ID :
150875
Tue, 11/23/2010 - 19:00
Auther :

N. Korea's artillery attack to have limited impact on economy: finance minister


SEOUL, Nov. 23 (Yonhap) -- The surprise North Korean artillery attack on an
island in the West Sea is expected to have a limited impact on South Korea's
economy, the nation's top economic policymaker said Tuesday.
In an emergency meeting of economic policymakers following artillery barrage on
Yeonpyeong Island near the sea demarcation line with North Korea that left at
least two marines dead, Finance Minister Yoon Jeung-hyun stressed that the
incident could increase volatility in the financial and foreign exchange markets
in the short run, but conditions should stabilize relatively quickly.
"The geopolitical risks posed by North Korea have always existed, and judging by
past crisis situations, overall conditions should regain normalcy soon," he said.

The market was rocked when Pyongyang tested two nuclear devices in 2006 and May
of last year, and experienced another jolt when a South Korean warship was sunk
near the North Korean border in March.
Yoon added that the South Korean economy is fiscally sound, the country possesses
adequate foreign currency reserves and is trusted in the international market.
He said that the government will do all it can to keep close tabs on market
developments and take swift action in case there is excessive volatility.
"The government has set up a 24-hour emergency monitoring team to check any
changes in the economy on a real time basis," he said.
The minister, meanwhile, said overseas credit rating agencies and foreign
investors have been contacted to make certain there are no misunderstandings
about the artillery attack.
The official said that government agencies have been ordered to deal firmly with
the hording of materials that can further fuel uncertainties.
yonngong@yna.co.kr
(END)

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