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Financial market volatility deepens in S. Korea: finance minister

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(Globalpost/GlobalPost)

SEOUL, June 26 (Yonhap) -- Volatility in South Korea's financial market has been intensifying amid worries that the U.S. could scale back its stimulus plan and that China's economic growth might be slowing down, the country's finance minister said Wednesday.

"As the global financial market is undergoing instability in the wake of U.S. Fed Chairman Ben Bernanke's remarks (on quantitative easing), worries over the Chinese economy also comes into play, deepening volatility in our market as well," Hyun Oh-seok told a meeting with other economic policymakers.

"Bernanke's remarks on a possible winding down of quantitative easing has a positive aspect as well in that they are based on the economic recovery of the U.S., but the market here appears to be reacting somewhat sensitively focusing more on a possible reduction of global liquidity," he added.

Hyun still assured that South Korea is faced with a "differentiated" situation in the face of a possible reduction in global liquidity given its continued current account surplus and a low ratio of short-term foreign debt.

His remarks came as the financial market here, including stocks and foreign exchange rates, has been losing significant ground since Bernanke said last week that Washington could taper its bond-buying program that has kept its interest rates at record lows and helped buoy its economy.

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http://www.globalpost.com/dispatch/news/yonhap-news-agency/130625/financial-market-volatility-deepens-s-korea-finance-minister