Korea set to tackle possible financial turbulenceMadeinkoreablog
North Korea fired a long-range rocket carrying what it claims is a satellite Sunday, further escalating already high tensions on the Korean Peninsula. In response, the South Korean government on Wednesday decided to shut down the inter-Korean industrial complex.
“South Korea’s credit default swap (CDS) premium started to move down in the global market, and the won-dollar rate has been stable,” the ministry said in a release.
The CDS premium, which measures a country’s credit risks, peaked at 76 on Tuesday but fell to 74 on Wednesday in New York, according to the ministry.
Investors were relieved as U.S. Fed Chair Janet Yellen hinted at a slower interest rate increase in the future.
The benchmark KOSPI, however, tumbled more than 2 percent on Thursday, the first trading session in five days, while the local currency gained ground against the U.S. dollar.The South Korean stock and foreign currency markets were closed until Wednesday for the Lunar New Year’s holiday.
The ministry said it will hold the review meeting every day until the markets stabilize.