South Korea to ease market jitters over external risks: finance minister

South Korea will take all the necessary steps to ease market anxieties that may arise from external risks like the devaluation of the Chinese yuan, Seoul's top economic policymaker said Monday.

In a meeting with senior ministry officials, Finance Minister Choi Kyung-hwan said the yuan's depreciation, China's unstable stock market and a possible U.S. rate hike are all contributing to greater downside risks.

"Under such circumstances, it is imperative that Seoul manages all the risks," the finance minister stressed.

He said the government must examine countermeasures that can allow Asia's fourth-largest economy to deal with all problems, even if they occur at the same time.

"It is important that detailed plans are in place to cover all developments," said Choi, who doubles as deputy prime minister in charge of economic affairs.

Regarding the yuan's devaluation, the minister said, the market must be made to realize that there are both advantages and disadvantages for South Korea.

Beijing adjusted its exchange rates for three straight days last week in an apparent bid to boost the country's exports.

"China's move could fuel economic uncertainties and may even affect emerging economies, but in the long run, a rise in China's growth and exports will actually help South Korea," he argued.

South Korea is a key exporter of intermediate goods to China, which are then assembled and shipped abroad.

The finance ministry started around-the-clock monitoring of developments in China last Thursday. The ministry said it is keeping close tabs on the movement of foreign capital in South Korea as well as other economic indicators. (Yonhap)