N. Korea's launch to have limited impact on Seoul markets: watchdog

SEOUL, April 5 (Yonhap) -- South Korea's financial watchdog said Sunday North Korea's rocket launch will not have a big impact on financial markets here, but it plans to closely monitor the situation to stem possible jitters.

"As North Korea's rocket firing was already anticipated, it will have a limited
impact on local financial markets," Chin Dong-soo, chairman of the Financial
Services Commission, said at a financial emergency meeting. "But as instability
stemming from the global financial turmoil has not fully eased yet, it is
important to prevent possible market jitters from expanding."
His remarks come after the Korean government confirmed that the North fired off
what it claims is a communications satellite earlier in the day despite repeated
international warnings.
Chin added the government needs to take systematic steps to keep the North's
rocket launch from spiraling into risk factors affecting the Korean economy and
markets.
His view is widely echoed by private experts who said Seoul markets would not be
greatly impacted by the rocket launch because they are accustomed to the
communist country's military threats.
The country's benchmark Korea Composite Stock Price Index (KOSPI) gained ground
recently to breach the 1,200-point level as foreign investors snapped up local
stocks. The Korean currency rose almost 11 percent against the U.S. dollar last
month, shrugging off fears that Japanese investors may pull money out of local
markets en masse in March.
sooyeon@yna.co.kr
(END)