South Korea's finance minister reaffirmed on Wednesday that the Seoul government will take swift and firm action to ease rising market uncertainties stemming from the surprise victory of US President-elect Donald Trump.
"The South Korean economy will experience a negative impact from heightened uncertainties since the US presidential election as trade protectionism is widening and a possible US rate hike is imminent," Finance Minister Yoo Il-ho said in a ministerial meeting in Seoul. "The government will strengthen monitoring of the local and overseas financial markets and economic trends, and, if necessary, take swift and resolute market stabilizing measures."
The top economic policymaker has made such strong signals on possible market turmoil since the US presidential election last week ended with Donald Trump's surprise victory, which sent a shock wave across the world.
The world market players are worried about how Trump's tough statements and campaign pledges against free trade will be transformed into detailed economic policies of the incoming US president.
South Korea's financial and foreign exchange authorities have run a supervisory team to monitor the financial market around-the-clock, while the trade ministry-led working-level group was launched to deal with expected trade pressures from the new Washington government.
The economic and trade policies of the new US administration are closely watched as the United States is the second-largest trade partner of South Korea after China.
Asia's fourth-largest economy has been in the doldrums as a global slowdown and low oil prices weighed heavily on its exports, the key economic driver, which posted negative monthly growth 21 times in the past 22 months.
The finance minister said the government will closely manage downside pressures and foreign exposures to cushion any fallout from abroad. (Yonhap)
