S. Korea to 'closely' watch market conditions amid growing woes in Europe

SEOUL, Feb. 7 (Yonhap) -- A fiscal crisis in some European countries will have a
"limited" impact on South Korea's financial markets as their exposure to the
looming instability remains marginal, Seoul officials said Sunday.
But the government will "closely" monitor market developments around the clock
and take "preemptive" action if needed, the Ministry of Strategy and Finance said
in a statement.
The remarks come as concerns are growing that sovereign debt problems in Greece
and other European nations could undercut the global economic recovery. Affected
by turbulence in U.S. and European markets, South Korea's stocks also plunged
last week while its currency lost ground against the greenback.
"We expect that the impact of the fiscal situation in Europe on domestic
financial markets will be limited," the ministry said. "Chances are also low that
the Korean economy will be affected by the crisis as we currently maintain a
sound fiscal status."
"Still, we will closely monitor the market around the clock to review what impact
it could have on us, while taking preemptive measures if necessary," it added.
kokobj@yna.co.kr
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