South Korea says financial markets stable despite Venezuela risks

SEOUL, January 05 (AJP) - South Korea said on Monday that spillover effects on its financial markets and broader economy from recent U.S. airstrikes on Venezuela and North Korea’s ballistic missile launch have so far been limited.

The assessment came after an emergency joint economic meeting convened to evaluate the potential impact of heightened geopolitical risks.

The meeting was chaired by Kang Gi-ryong, assistant vice minister at the Ministry of Economy and Finance, and included officials from the foreign, trade and finance ministries, as well as the Financial Services Commission, the Bank of Korea, the Financial Supervisory Service and the Korea Center for International Finance.

Officials said volatility in global markets, as well as in South Korea’s financial and foreign-exchange markets, remained manageable despite the recent developments. They added that any fallout for the real economy and overall trade conditions was unlikely to be significant in the near term.

"Still, the government would maintain heightened vigilance," an official said, warning that geopolitical uncertainty could escalate.

Authorities plan to step up monitoring of global oil prices, exchange rates, movements in international financial markets and shifts in export and import conditions.