ID :
62070
Sun, 05/24/2009 - 05:49
Auther :
Shortlink :
https://www.oananews.org//node/62070
The shortlink copeid
(LEAD) Roh`s death likely to have limited effect on economy, markets: gov`t
(ATTN: RECASTS headline, lead; UPDATES with more details throughout)
SEOUL, May 23 (Yonhap) -- The death of former South Korean President Roh Moo-hyun
is expected to have a limited impact on the local economy and the financial
markets, the finance ministry said Saturday.
"His death is not likely to have a (negative) impact on South Korea's credit
ratings or the financial markets," said an official at the Ministry of Strategy
and Finance. "But amid budding signs of economic improvements, if social
conflicts arise due to the incident, it is feared they will throw cold water on
momentum for an economic recovery."
Roh, who served as South Korea's president from 2003 to 2008, was confirmed dead
by a regional hospital Saturday morning amid an ongoing investigation into
allegations that he and his family received at least US$6 million in bribes from
a corrupt businessman while in office.
Roh, 62, is believed to have committed suicide by jumping off a mountainside in
his hometown of Gimhae, some 400 kilometers south of Seoul.
The finance ministry expressed concerns that his death may deepen social and
political discord between conservatives and liberals, which could delay the
passage of several key economic bills pending in the parliament.
The remarks come as a set of economic indicators are reinforcing cautious
optimism that the South Korean economy is nearing its bottom.
It narrowly averted a recession, or two consecutive quarters of contraction, by
growing 0.1 percent in the first quarter from three months earlier. Asia's
fourth-largest economy shrank 5.1 percent in the final quarter of 2008.
The financial regulator added that given the market's previous responses to
political incidents or geopolitical risks stemming from North Korea, Roh's death
is not likely to have a direct impact on the financial markets.
The country's key stock index recouped losses in about 15 sessions after tumbling
2.4 percent on the day North Korea tested a nuclear bomb in 2006. The Seoul
bourse also shook off the communist country's defiant rocket launch on April 5 of
this year.
The benchmark Korea Composite Stock Price Index (KOSPI) is hovering above the
1,400-point level and the local currency has gained 0.97 percent against the U.S.
dollar so far this year after tumbling 25.7 percent last year alone.
Analysts are echoing similar views, saying Roh's death is likely to have a muted
effect on the local stock market as the incident is not directly linked to the
economy.
"His death will not have a big impact on the Seoul bourse. But if the incident
sparks social conflict between conservatives and liberals, investors could feel
jitters," said Ku Hee-jin, a senior analyst at Daishin Securities Co.
sooyeon@yna.co.kr
(END)
SEOUL, May 23 (Yonhap) -- The death of former South Korean President Roh Moo-hyun
is expected to have a limited impact on the local economy and the financial
markets, the finance ministry said Saturday.
"His death is not likely to have a (negative) impact on South Korea's credit
ratings or the financial markets," said an official at the Ministry of Strategy
and Finance. "But amid budding signs of economic improvements, if social
conflicts arise due to the incident, it is feared they will throw cold water on
momentum for an economic recovery."
Roh, who served as South Korea's president from 2003 to 2008, was confirmed dead
by a regional hospital Saturday morning amid an ongoing investigation into
allegations that he and his family received at least US$6 million in bribes from
a corrupt businessman while in office.
Roh, 62, is believed to have committed suicide by jumping off a mountainside in
his hometown of Gimhae, some 400 kilometers south of Seoul.
The finance ministry expressed concerns that his death may deepen social and
political discord between conservatives and liberals, which could delay the
passage of several key economic bills pending in the parliament.
The remarks come as a set of economic indicators are reinforcing cautious
optimism that the South Korean economy is nearing its bottom.
It narrowly averted a recession, or two consecutive quarters of contraction, by
growing 0.1 percent in the first quarter from three months earlier. Asia's
fourth-largest economy shrank 5.1 percent in the final quarter of 2008.
The financial regulator added that given the market's previous responses to
political incidents or geopolitical risks stemming from North Korea, Roh's death
is not likely to have a direct impact on the financial markets.
The country's key stock index recouped losses in about 15 sessions after tumbling
2.4 percent on the day North Korea tested a nuclear bomb in 2006. The Seoul
bourse also shook off the communist country's defiant rocket launch on April 5 of
this year.
The benchmark Korea Composite Stock Price Index (KOSPI) is hovering above the
1,400-point level and the local currency has gained 0.97 percent against the U.S.
dollar so far this year after tumbling 25.7 percent last year alone.
Analysts are echoing similar views, saying Roh's death is likely to have a muted
effect on the local stock market as the incident is not directly linked to the
economy.
"His death will not have a big impact on the Seoul bourse. But if the incident
sparks social conflict between conservatives and liberals, investors could feel
jitters," said Ku Hee-jin, a senior analyst at Daishin Securities Co.
sooyeon@yna.co.kr
(END)
