Korea's economy capable of responding to crises: regulator

Published : Apr 19, 2017 - 11:11 Updated : Apr 19, 2017 - 11:31

South Korea's economic fundamentals are sound and it is capable of "fully" responding to potential crises at home and abroad, the nation's top financial regulator said Wednesday.

Zhin Woong-seob, governor of the Financial Supervisory Service, said, however, global uncertainties, including US interest rate hikes and a wave of protectionism, make it "increasingly difficult to predict the future we're headed towards."

(Yonhap)

"Looking outward, we can also see the global environment full of uncertainties, as depicted by the prevalence of trade protectionism, an interest rate hike by the Fed and possible breakup of the EU," Zhin told a meeting of senior executives at foreign financial firms in South Korea.

Zhin said global uncertainties are unlikely to have a negative impact on the South Korean economy.

"The Korean economy has strong fundamentals, has the eighth-largest foreign reserves in the world and recorded a current account surplus for 60 straight months," the FSS chief.

"Moreover, the financial sector is fully capable of responding to crises, as capital soundness and foreign currency liquidity at local banks have been maintained at favorable levels," Zhin said. (Yonhap)