S. Korea tightens monitoring of financial market

SEJONG, July 4 (Yonhap) -- The South Korean finance ministry said Tuesday that it tightened its monitoring of the local financial market following the latest missile launch by North Korea.

After launching a ballistic missile earlier in the day, Pyongyang claimed in an official announcement that it has successfully test-fired an intercontinental ballistic missile (ICBM) directly challenging calls by the international community to halt weapons of mass destruction development.

The benchmark KOSPI lost 0.58 percent to finish at 2,380.52 points, while the local currency closed at 1,150.60 won against the U.S. dollar, down 3.7 won from the previous session's close.

"We are looking into possible fallout from the North Korean provocation," said an official from the Ministry of Strategy and Finance. "But we see that it has a limited impact on the South Korean market as North Korea made the announcement after the stock market closed."

But he said the ministry is on high alert around the clock and maintaining a heightened level of vigilance against any shockwaves spreading into the financial market and the real economy.

The finance ministry will hold an emergency meeting on Wednesday to review market conditions and discuss measures against any changes.

brk@yna.co.kr
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