S. Korean financial markets stable despite growing tensions: minister

By Koh Byung-joon
SEOUL, June 10 (Yonhap) -- South Korea's financial markets remain "relatively
stable" despite growing tensions following North Korea's nuclear test, the
nation's top financial and economic policymaker said Wednesday.

"Despite increased risks after the North's nuclear test, local financial and
currency markets have been relatively stable," Finance Minister Yoon Jeung-hyun
told an economic policy meeting. "Outside views of economic fundamentals and
potentials have also improved."
North Korea conducted an underground nuclear test on May 25, raising tensions and
sparking condemnation from the international community. North Korea related risks
are a major reason for what is called the "Korea discount" in local financial
markets.
As for the economic conditions, there are some signs that the economy is
stabilizing, citing a recent increase in credit card spending and car purchases,
Yoon said. Improving consumer sentiment seems to be translating into more
spending, he added.
But the minister said there are still "not a few factors" that makes him hesitant
to fall into optimism about the nation's economy.
For a full-swing economic recovery, he said exports should rebound as they
account for a much portion of the nation's growth. "Whether the economy is
rebounding should be determined after major second-quarter indicators come out,"
Yoon said.
In May, overseas shipments plunged 28.3 percent from a year earlier, a sharper
contraction than a 19.6 percent fall in April.
The government, for its part, should lift roadblocks deemed to hamper business
activities of exporters, while at the same time spurring domestic demand to
facilitate economic rebound, he added.
kokobj@yna.co.kr
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