By Kim Tae-gyu
Staff Reporter
Four hours after North Korea's rocket launch, top financial policymakers got together to discuss ways of coping with the issue.
Financial Services Commission (FSC) Chairman Chin Dong-soo presided over an emergency meeting at 3 p.m. on Sunday after the North fired what it claims is a communication satellite at 11:30 a.m.
``The rocket firing was largely anticipated. Hence, it is unlikely to affect the economy in a big way,'' Chin said. ``But we will put forth efforts to prevent the event from creating any jitters amid the global financial crisis.''
By contrast, the Federation of Korean Industries (FKI), the country's business lobby group, voiced concerns over the missile fire.
``I am afraid it will chill the economy of the South, which is showing some signs of stabilizing,'' an FKI official said on condition of anonymity.
However, the rocket launch is expected to have a limited impact on the financial markets here, depending on how the North follows up and the rest of the world deals with the event.
``Of course, it is bad news. However, both the stock and foreign exchange markets already factored in the rocket firing,'' said Kim Se-jung, a senior strategist at Shin Young Securities.
``Accordingly, you will not see any abrupt collapse of stock prices or foreign exchange rates this week unless there are further actions from the communist regime,'' he said.
Fitch Ratings, one of the world's top three rating agency, also made it clear that Pyongyang's rocket launch would not negatively affect the South's sovereign ratings.
``South Korea's sovereign ratings remain constrained by political, security and economic uncertainties regarding North Korea,'' Ngiam Ai Ling, director of Fitch Asia Sovereign Ratings, told Yonhap News agency.
``Political reunification costs are an important consideration and one that we assess in the context of other political and security developments. Recent developments have not given us any further guidance on these potential costs, and thus our view is unchanged,'' she said.
A Seoul-based company stuck in a real challenge is Hyundai Asan, which has carried out business in the Stalinist country over the past decade.
The corporation spearheaded the tour to Mt. Geumgang, which is now suspended after a Southern lady was shot dead in the area last year, and is deeply involved in the Gaeseong Industrial Park.
Gaeseong complex businesses have hit a snag of late after the North intermittently shut down the border leading to the area due to a military drill in the South.
``Tens of thousands of people expressed their will to visit the Mt. Geumgang area this month alone as soon as the tour is resumed,'' said a Hyundai Asan spokesman. ``We hope things will improve in the near future. We are crossing our fingers.''