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Financial watchdog vows support for smaller exporters against currency risks

All News 15:17 January 05, 2017

SEOUL, Jan. 5 (Yonhap) -- The chief of South Korea's state financial watchdog said Thursday he will explore ways to support smaller exporters, as they are susceptible to uncertainty over foreign exchange rates.

Zhin Woong-seob, governor of the Financial Supervisory Service (FSS), delivered the message during a visit to an aluminum product exporting company based in Incheon, just west of Seoul. He pointed out potential trouble stemming from increased volatility in the foreign exchange market.

Concern is growing over external uncertainties including the new U.S. administration's policy direction and the pace of interest rate hikes. In fact, 53.7 percent of local small and medium-sized exporters here cited the foreign exchange issue as a key risk factor, according to a survey by the Korea Federation of SMEs. Only 10.3 percent of local SMEs had insurance policies to cover potential currency rate-related damage as of May 2015.

The FSS chief said his agency will consult closely with lenders on ways to help them, such as the expansion of loans and consulting services.

Zhin Woong-seob, governor of the Financial Supervisory Service, in a file photo. (Yonhap)


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