FSC/FSS Joint Meeting on Domestic and Overseas Financial Market Situations
Hello our readers.
It was a busy morning at FSC today. There was FSC/FSS Joint meeting under the chairmanship of the FSC Vice Chairman Choo Kyungho. The meeting was held to check up recent development of current global issues.
Among many issues happening worldwide, the meeting focused on Italy’s recent election and the US sequester. Considering a close interrelationship in the global financial system, the meeting analyzed the impacts of those issues on financial markets home and abroad, and discussed policy responses in the future.
The political uncertainty in Italy along with the US sequester impose a growing political risk on global financial markets. Both of the issues are destabilizing factors to global financial markets. Italy’s election tightens tensions across the euro-zone, heightening concerns about anti-austerity sentiment. If the US sequester begins as of tomorrow, the US would face a recession of the real economy.
The main concern is to what extent those issues are influential in Korean financial market. So far, despite little changes in the KOSPI, KRW/USD exchange rate and foreign capital, domestic financial market remains sound without being exposed to a great volatility.
However, FSC in cooperation with FSS will keep monitoring global issues and their impacts on domestic financial markets in a timely and thorough manner. Also, such meetings will be on a frequent basis, so as not to miss out any update. FSC may have another busy morning sometime soon, and the update will be here at our blog post!
* Official Press Release available in English http://www.fsc.go.kr/downManager?bbsid=BBS0048&no=83346