N. Korea's nuclear test rattles S. Korean financial markets

By Lim Chang-won Posted : September 4, 2017, 10:18 Updated : September 4, 2017, 10:18

[Yonhap News Photo ]


South Korea's top economic official called for strict risk management as stocks opened sharply lower on concerns about heightened geopolitical tensions caused by North Korea's fresh nuclear test.

The benchmark KOSPI fell 20.19 points, or 0.86 percent, to 2,337.50 in early trading Monday.

"We should take quick and firm market-stabilization measures in accordance with our contingency plans in the event of abnormal signs," Finance Minister Kim Dong-yeon told a meeting of top policymakers including Bank of Korea Governor Lee Ju-yeol and Financial Services Commission Chairman Choi Jong-ku.

Kim warned that a high level of geopolitical tensions caused by North Korea's sixth nuclear test on Sunday could have a negative impact on South Korea's economy and financial markets. "It may have a short-term impact on our financial and foreign exchange markets, and a negative impact on the real economy as well."

To Pyongyang's previous provocations, South Korean investors had maintained a relatively stable response, but policymakers in Seoul took North Korea's sixth and most powerful nuclear test very seriously as it followed a series of ICBM tests.
 



 
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