BUSINESS

Cancellation of US-NK summit expected to have limited impact on S. Korean market: BOK

By Yonhap
  • Published : May 25, 2018 - 09:37
  • Updated : May 25, 2018 - 09:37

The recent cancellation of the US-North Korea summit will likely have a limited impact on the South Korean financial market, a senior central bank official said Friday.

The Bank of Korea held an emergency meeting at 8:30 a.m., hours after US President Donald Trump released his letter to scrap the planned meeting with North Korean leader Kim Jong-un on June 12 in Singapore.

The closed-door meeting was chaired by Yoon Myun-shik, the senior deputy governor of the BOK, with several senior officials at the central bank.


(Yonhap)

"As we saw in the overnight session of the US market, the index fell in the beginning but recovered the losses afterwards," Yoon told reporters after the meeting. "The South Korean market is expected to move likewise, although foreign investors here are more sensitive to geopolitical risks."

The benchmark KOSPI started 0.54 percent lower on Friday, with the Korean won slightly losing ground against the US dollar.

"In the past, geopolitical risks like North Korea's missile firings and nuclear tests had a short-lived impact on the market," the BOK official said. "But we will keep close tabs on the market and be ready to take action." (Yonhap)

 



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