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S. Korea to take pre-emptive action on financial markets if necessary

All Headlines 09:29 October 12, 2018

SEOUL, Oct. 12 (Yonhap) -- South Korea's financial authorities said Friday they would take pre-emptive action on financial markets if necessary, a day after the Korean won plunged amid a global sell-off in stocks.

Kim Yong-beom, vice chairman of the Financial Services Commission (FSC), held an emergency meeting with senior officials from the Financial Supervisory Service and the Korea Exchange earlier in the day.

Kim said they reviewed a contingency plan against higher market volatility during the meeting.

"If necessary, we will pre-emptively take countermeasures," Kim said in a statement.

Kim Yong-beom (2nd from R), vice chairman of the Financial Services Commission, speaks during an emergency meeting on financial markets on Oct. 12, 2018. (Yonhap)

South Korea's main stock index slumped 4.4 percent on Thursday -- the largest drop in nearly seven years. The won plunged 0.9 percent against the U.S. dollar.

Fears of U.S. interest rate hikes and a worsening trade spat between the U.S. and China dampened investor sentiment.

The U.S. Federal Reserve recently increased its key rates for the third time this year, and one more rise is expected by the end of this year.

Despite a widening rate gap with the U.S., Kim played down the possibility of a rapid capital outflow from South Korea, saying Korea's economic fundamentals are strong.

kdh@yna.co.kr
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