Korea’s financial markets in general are maintaining stability thanks to gradual recovery of the advanced economies.
Volatility in the international financial markets is not significant either since the US tapering was something that had been anticipated in advance.
However, there still remain some global risk factors such as recent geopolitical issues in the emerging nations. Uncertainties in Ukraine, China’s economic slowdown, and Euro zone’s deflation threats are some of the factors that could further pull down global recovery. Moreover, amid increase in exports and employment, there are also domestic concerns about potential corporate defaults, and the consequences of strong won which could pose risks to the domestic financial markets.
To cope with such potential dangers, the financial authorities will strengthen monitoring on global uncertainties such as the Ukrainian crisis while ensuring that the risk factors in the financial markets do not pose any negative impact on Korea’s economic recovery.