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Seoul officials meet to cope with Dubai debt crisis

All Headlines 10:05 November 29, 2009

SEOUL, Nov. 29 (Yonhap) -- South Korea's financial authorities were to convene a meeting later on Sunday to gauge the fallout from the Dubai debt crisis and discuss countermeasures to stave off any possible impact on the nation's financial markets, officials said.

The meeting, slated for 2 p.m. in Seoul, was to draw high-ranking officials from the Financial Services Commission and the Financial Supervisory Service, the nation's two financial watchdog bodies, said the officials.

The meeting comes after a Dubai government investment fund called for a six-month repayment moratorium on billions of dollars in debt Wednesday, raising fears it could trigger yet another global financial crisis after the collapse of Lehman Brothers last year.

The shocking news rattled the Korean financial markets, with its stock index plunging and the local currency losing marked ground against the U.S. dollar last week as investors sought safer assets amid increased uncertainty.

Government officials, however, said that the impact would be marginal as the exposure of local companies and financial firms to the Dubai crisis is limited.


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