Emerging countries should wisely cope with spillover effects from the Federal Reserve's tapering of its quantitative easing steps, South Korea's central banker said Friday.
Bank of Korea Governor Kim Choong-soo said in a meeting with heads of local banks that it was a good decision for the U.S. central bank to start reducing its monetary stimulus, adding that there is confidence about the recovery of the U.S. economy.
"But emerging countries are vulnerable to changes in the global financial markets. They should be wary of spillover impacts from (the Fed's) QE tapering," the governor said.
Last month, the Federal Reserve announced its decision to begin reducing its monthly bond purchases by $10 billion to $75 billion from January, citing a stronger job market. (Yonhap News)