[THE INVESTOR] South Korean Finance Minister Yoo Il-ho on June 26 pledged to implement “aggressive stabilization measures” to minimize the market fluctuations that may be caused by Britain’s recent decision to leave the European Union.
He also said the government will keep up steady communication with market participants, especially with those outside the country.
“We have seen cases in the past where (overseas) investors became overly concerned, despite the strong fundamentals of the Korean economy.”
Finance Minister Yoo Il-ho
To prevent unnecessary misunderstandings, Yoo said the government will be paying close attention to foreign investors and credit rating agencies.
Economists say Yoo was trying to send a signal to foreign investors that South Korea is more than resilient against the potential crisis that Brexit could cause.
“The government will prepare for all scenarios,” Yoo said. “With more than US$370 billion in our foreign currency reserves, our economy is more than capable of responding to (post-Brexit crisis). We will continue to bolster such capabilities by stabilizing liquidity.”
Yoo added that international cooperation will be a critical factor in dealing with market uncertainties. The European Central Bank and G7 have already announced market stabilizing plans, and they are now calling for the UK to exit as early as possible to minimize the impact of its departure.
The minister made the remarks at the latest government-led emergency meeting for discussing countermeasures in the wake of the Brexit vote. The meeting was also attended by Vice Finance Minister Choi Sang-mok, Bank of Korea Senior Deputy Governor Jang Byung-hwa and HSBC Korea CEO Jung Eun-young.
By Kim Ji-hyun (firstname.lastname@example.org