South Korea vows swift response to 'unwarranted' volatility amid global uncertainties

Seoul, Oct 28
South Korean Finance Minister Choi Sang-mok vowed on Monday to enhance market monitoring and to swiftly respond to excessive volatility under contingency plans amid weaker growth data and global uncertainties, his office said.

Choi made the remarks during an economy-related ministers' meeting in Seoul after the gross domestic product (GDP) expanded 0.1 percent on-quarter in the July-September period, lower than market expectations.

"The government will pay extra attention to signs of economic uncertainties shown in the third-quarter GDP data and closely check detailed market circumstances at home and abroad," Choi said.

The minister pointed to the upcoming presidential election in the United States, the economic situations of major nations and the Middle East crisis as major risks, reports Yonhap news agency.

"The government will swiftly respond to any excessive volatility in the financial and foreign exchange markets that are far from economic fundamentals under our contingency plans and close cooperation with other agencies concerned," Choi was quoted as saying.

The policy focus will also be on how to improve the competitiveness of the semiconductor industry amid tough global competitions, Choi said, pledging additional supportive measures to nurture talents and support the construction of infrastructure.

In a separate meeting with officials on Middle East issues, Bank of Korea Deputy Gov. Ryoo Sang-dai said, "We cannot rule out the possibility of risk-averting sentiments growing further in the global market in accordance with how Iran will react."

"It is needed to stay vigilant and closely monitor financial and economic situations at home and abroad," he added.

On Saturday, Israel carried out airstrikes against military sites in Iran in retaliation for missile strikes by Tehran against Israel earlier this month, sparking fears of an extended conflict in the region, according to foreign media reports.