Below is FSC Chairman Shin Je-Yoon’s comments during FSC and FSS Joint Meeting on Financial Market Conditions held on Sunday, February 2:
“Volatility was witnessed in the global financial market for two consecutive days following the Federal Open Market Committee(FOMC)’s decision on Thursday to further wind down its asset purchase program. However, the market seemed to have weathered the external shock better than we had initially anticipated.
The FOMC’s further tapering was a well predicted decision which had only limited short-term impact on the global financial market. Likewise, market experts expect that the FOMC’s decision will have limited effect to Korea’s financial market.
However, we cannot rule out the possibility of increased negative impact of further tapering since the US is approaching closer towards scaling down the quantitative easing policy. In order to safeguard Korea’s economy from unexpected external shocks resulting from the US’s exit strategy, we have to maintain solid fundamentals while focusing our efforts in preemptively detecting and improving the weaknesses.
US’s exit strategy is not a matter of ‘upcoming future’ but an ‘ongoing reality’. The financial authorities will concentrate our abilities in strengthening market oversight and preemptively blocking out the impact of external shocks on our economy.”