ID :
61382
Tue, 05/19/2009 - 17:36
Auther :
Shortlink :
https://www.oananews.org//node/61382
The shortlink copeid
Short-term floating money is not excessive: finance minister
SEOUL, May 19 (Yonhap) -- South Korea's top policymaker said Tuesday the quantity
of short-term floating money unleashed in the market is not excessive but the
government is still closely monitoring money flow.
"We do not agree with the claim that too much short-term floating money has been
released," Finance Minister Yoon Jeung-hyun told reporters in a meeting marking
his 100th day in office since inauguration in February. "We are not considering a
change in our overall policy stance."
"Still we are closely monitoring money flow. What we have to do now is to channel
the liquidity into the real part of the economy," Yoon added.
His comments are in line with a previous statement in which he pledged to stick
to the government's current "expansionary" policy stance to stimulate slumping
domestic demand and kick-start the economy, which is feared to fall into a
recession for the first time in more than a decade.
As the government unveiled diverse stimulus measures including tax reductions and
additional budget spending, concerns are growing that too much money has been
unleashed into the market, raising concerns it could lead to a possible bubble
and speculation in stock and property markets.
In an earlier interview with Yonhap News Agency, Yoon said that the government
will make every possible effort to curb speculation in real estate markets.
"It would be another problem if the money flows into real estate and other asset
markets, raising the overall asset prices," Yoon said. "In that case, new macro
and microeconomic measures should be crafted. But there has not been a big change
in asset markets yet and we don't see a need to take such action."
According to the data provided by the finance ministry and the Bank of Korea,
so-called floating funds, or money moving in and out of investments in search of
higher profits, amounted to 811.3 trillion won at the end of last month. The
April figure is the highest ever and compares with 719.5 trillion won at the end
of September when global financial turmoil first started to impact the local
economy.
kokobj@yna.co.kr
(END)
of short-term floating money unleashed in the market is not excessive but the
government is still closely monitoring money flow.
"We do not agree with the claim that too much short-term floating money has been
released," Finance Minister Yoon Jeung-hyun told reporters in a meeting marking
his 100th day in office since inauguration in February. "We are not considering a
change in our overall policy stance."
"Still we are closely monitoring money flow. What we have to do now is to channel
the liquidity into the real part of the economy," Yoon added.
His comments are in line with a previous statement in which he pledged to stick
to the government's current "expansionary" policy stance to stimulate slumping
domestic demand and kick-start the economy, which is feared to fall into a
recession for the first time in more than a decade.
As the government unveiled diverse stimulus measures including tax reductions and
additional budget spending, concerns are growing that too much money has been
unleashed into the market, raising concerns it could lead to a possible bubble
and speculation in stock and property markets.
In an earlier interview with Yonhap News Agency, Yoon said that the government
will make every possible effort to curb speculation in real estate markets.
"It would be another problem if the money flows into real estate and other asset
markets, raising the overall asset prices," Yoon said. "In that case, new macro
and microeconomic measures should be crafted. But there has not been a big change
in asset markets yet and we don't see a need to take such action."
According to the data provided by the finance ministry and the Bank of Korea,
so-called floating funds, or money moving in and out of investments in search of
higher profits, amounted to 811.3 trillion won at the end of last month. The
April figure is the highest ever and compares with 719.5 trillion won at the end
of September when global financial turmoil first started to impact the local
economy.
kokobj@yna.co.kr
(END)
