South Korea's financial authorities on Monday vowed to take all necessary measures to minimize the fallout from Britain's vote to leave the European Union, emphasizing that Asia's fourth-largest economy is well-positioned to tide over the unprecedented shock.
The head of the country's top financial regulator noted volatility in the local financial market may continue to increase over an extended period of time but insisted Britain's exit from the EU, called Brexit, will have limited impact on the global financial market.
"There still exists a possibility that volatility in the global financial market may further expand due to possible departures of other countries from the EU and various other factors that might emerge in the process of the market shifting to a new balance following Brexit," Yim Jong-yong, chairman of the Financial Services Commission (FSC), said in an emergency meeting in Seoul.
The meeting was attended by a wide range of top financial officials, including the heads of the Financial Supervisory Service, the Korea Federation of Banks and the Korea Financial Investment Association.
Yim said the financial watchdog has already devised manuals for dealing with Brexit woes, which he said might include a crash in the stock market and a rise in the outflow of foreign capital.
"The financial authorities will thoroughly review the details and procedures of their contingency plans that are already in place, so such steps can be taken actively and swiftly should a condition that requires such measures take place," the FSC chairman said at the meeting.
"They will also come up with market stabilization measures in advance and immediately take necessary measures should market concerns exceed a certain level," he added.
In a separate meeting, the country's commerce ministry also pledged to take all necessary steps, although he insisted the negative impact from Brexit on the local economy will likely be limited.
"A majority of experts believe the scope of impact from Brexit on our exports, investment and trade will remain limited throughout various stages of the process when considering the volume of trade and investment between South Korea and Britain, as well as the time needed to negotiate Britain's exit from the EU," said Joo Hyung-hwan, minister of trade, industry and energy.
In 2015, South Korea's exports to Britain came to $7.39 billion, only accounting for 1.4 percent of the country's overall outbound shipments, according to the trade ministry. Foreign investment from Britain into South Korea also accounted for only 1.2 percent of the total.
"The government will take active measures to make sure that our firms will not face any unnecessary difficulties in exporting their goods to Britain or invest in the country," Joo said in a Seoul meeting with business leaders that was originally designed to discuss new growth engines, according to the ministry.
Joo added the ministry was also operating a special team to daily monitor the possibility of growing uncertainties in the financial market taking a toll on the real economy, especially exports.
South Korea's exports have dropped every single month since the start of last year. (Yonhap)
The head of the country's top financial regulator noted volatility in the local financial market may continue to increase over an extended period of time but insisted Britain's exit from the EU, called Brexit, will have limited impact on the global financial market.
"There still exists a possibility that volatility in the global financial market may further expand due to possible departures of other countries from the EU and various other factors that might emerge in the process of the market shifting to a new balance following Brexit," Yim Jong-yong, chairman of the Financial Services Commission (FSC), said in an emergency meeting in Seoul.
The meeting was attended by a wide range of top financial officials, including the heads of the Financial Supervisory Service, the Korea Federation of Banks and the Korea Financial Investment Association.
Yim said the financial watchdog has already devised manuals for dealing with Brexit woes, which he said might include a crash in the stock market and a rise in the outflow of foreign capital.
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"The financial authorities will thoroughly review the details and procedures of their contingency plans that are already in place, so such steps can be taken actively and swiftly should a condition that requires such measures take place," the FSC chairman said at the meeting.
"They will also come up with market stabilization measures in advance and immediately take necessary measures should market concerns exceed a certain level," he added.
In a separate meeting, the country's commerce ministry also pledged to take all necessary steps, although he insisted the negative impact from Brexit on the local economy will likely be limited.
"A majority of experts believe the scope of impact from Brexit on our exports, investment and trade will remain limited throughout various stages of the process when considering the volume of trade and investment between South Korea and Britain, as well as the time needed to negotiate Britain's exit from the EU," said Joo Hyung-hwan, minister of trade, industry and energy.
In 2015, South Korea's exports to Britain came to $7.39 billion, only accounting for 1.4 percent of the country's overall outbound shipments, according to the trade ministry. Foreign investment from Britain into South Korea also accounted for only 1.2 percent of the total.
"The government will take active measures to make sure that our firms will not face any unnecessary difficulties in exporting their goods to Britain or invest in the country," Joo said in a Seoul meeting with business leaders that was originally designed to discuss new growth engines, according to the ministry.
Joo added the ministry was also operating a special team to daily monitor the possibility of growing uncertainties in the financial market taking a toll on the real economy, especially exports.
South Korea's exports have dropped every single month since the start of last year. (Yonhap)
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