'THAAD not to weigh down S. Korean economy'

Finance Minister Yoo Il-ho said Wednesday the deployment of the advanced U.S. missile defense system in the South to deter Pyongyang's provocations will not negatively affect the local economy.

Seoul and Washington have begun discussions on the placement of the Terminal High Altitude Area Defense (THAAD) system, which may provoke China.

"While countries may face difficult tensions, the economy always has its own routine," said Yoo. "When South Korea faced disputes with Japan, their economic relationship remained intact. The economy is something we can think of separately."

On Sunday, the North launched a rocket carrying the Kwangmyongsong-4 satellite, which was viewed by many as a cover for testing its intercontinental ballistic missile technology.

The move immediately led South Korea to speed up talks with the U.S. on the deployment of the THAAD system, to which China, a key ally of North Korea, expressed a strong opposition.

Despite the geopolitical tension, Yoo said the South Korean economy will remain stable.

"Our past experience shows that the finance and foreign exchange market returns to normal two or three days after a provocation by the North," Yoo said. "The latest missile launch by Pyongyang will have a limited impact." (Yonhap)