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Financial regulator to review contingency plans over N. Korea's provocation

All News 15:16 September 09, 2016

SEOUL, Sept. 9 (Yonhap) -- South Korea's financial authorities on Friday said they will review contingency plans in place for possible market turmoil caused by North Korea's provocation.

The Financial Services Commission (FSC) convened an emergency meeting of senior officials to discuss the aftermath of the communist neighbor's fifth nuclear test earlier in the day.

Government officials related to the financial market meet in Seoul on Sept. 9, 2016, to discuss countermeasures to possible adverse effects from North Korea's nuclear test. (Courtesy of the Ministry of Strategy and Finance)

In the session, presided over by the FSC's chief Yim Jong-yong, the commission concluded that the local financial market has suffered no big impact from Pyongyang's latest provocation.

"Big changes in the stock prices and foreign exchange rate today rather appear more affected by a sense of disappointment over the European Central Bank's freeze of interest rates and profit-taking," it said.

The agency pointed out that Seoul's financial market has traditionally been little affected by the North's provocations, or has recovered quickly when affected.

"But now that the intensity of North Korea's threats of provocation is constantly getting higher and the situations are still uncertain, there is a possibility that the impact on the financial market won't be short-lived," it added. "We will closely monitor related trends. We will also review existing contingency plans in case of a shift in the situation."


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