As you may know already, North Korea surprised the world by launching its long-range rocket last Wednesday December 12, 2012. A few hours after the launch, FSC’s Vice Chairman Choo Kyungho held a joint FSC-FSS emergency meeting to discuss the impacts of North Korea’s provocation on financial market and measures to cope with them.
Actually, North Korea’s rocket launch had only limited effects on South Korea’s financial market. While the missile was launched at 9:51 am, at 1:30pm the KOSPI rose by 1.21 points and the USD/KRW rose by 0.16% compared to figures just before the rocket launch. Net purchase of securities by foreigners was KRW 27.8 billion. As in the past years, South Korea’s financial market showed resilience to North Korea’s (attempted) missile provocations.
After the emergency meeting, the FSC and FSS decided to continue to monitor financial situations, and to conduct contingency measures if market becomes unstable.