Korean markets stay firm despite high external risks

(ATTN: UPDATES with more info at bottom)
SEOUL, April 22 (Yonhap) -- South Korea's top central banker said Friday that the local financial markets remain firm though a set of external risks, including U.S. fiscal problems, linger.
"Recently, it seemed that there are many risks outside (the country)," Bank of Korea (BOK) Gov. Kim Choong-soo said in a monthly meeting with heads of 11 local financial firms.
Kim cited U.S. fiscal problems, European debt woes and political unrest in the Middle East and North African countries as the main external risks.
"But on the domestic front, the local stock market remains in good shape. Despite the recent problems in the local financial sector, the financial markets are running smoothly," Kim said.
His remarks came as the BOK froze the key interest rate at 3 percent this month amid lingering external uncertainties, including the fallout of Japan's quake. The bank, however, sees high inflation down the road, revising up its 2011 inflation projection to 3.9 percent from 3.5 percent.
The BOK said the bank heads shared the view that rising oil and commodity prices are putting upward pressure on inflation around the globe although the world economy is on the recovery path.
sooyeon@yna.co.kr