Anchor: South Korea's currency has become more volatile against the dollar following U.S. tariff hikes on Chinese products, but according to the government, the fluctuation isn't excessive compared with other Asian currencies. The government added that the U.S.-China trade war will have only a limited impact on the financial market.  
Celina Yoon has more.  

Report: South Korea noted on Monday that the Korean won has not lost too much value against the dollar compared with other Asian currencies such as the Chinese yuan or Taiwanese dollar. 

First Vice Finance Minister Lee Ho-seung told reporters after a meeting with senior officials of the central bank and other financial agencies that foreign investors withdrew their investment in Korean stocks while increasing investment in bonds. He said Seoul's financial market is still seeing a net inflow of foreign funds this year. 

South Korea's main bourse KOSPI plunged while its currency weakened against the U.S. dollar amid concern over a trade war following Washington's tariff hikes on 200-billion dollars worth of Chinese goods from ten to 25 percent on Friday. 

On Monday, the local currency sank to its lowest in two years and four months, losing ten-point-five-won against the dollar to end the session at one-thousand-187-point-five won. 

In his opening remarks during the meeting, Lee said that the direct impact of the tariff hike on South Korea's real-sector economy is limited since it applies only to Chinese goods that depart from China after May 10. 

However, he noted that the U.S.-China trade conflict has heightened uncertainties in the global economy and could lead to greater volatility in international financial markets. 

The vice finance minister said the government will take steps to stabilize its financial market if necessary while continuing its monitoring.

Lee said most think tanks expect South Korea's exports will pick up in the latter half of the year thanks to a recovery in the global semiconductor market. 

He added that too much anxiety isn't helpful since both the U.S. and China have indicated their willingness to continue holding talks.

In an interview with Fox News Sunday, U.S. National Economic Council Director Larry Kudlow said U.S. President Donald Trump and Chinese President Xi Jinping may hold trade negotiations on the sidelines of the G20 summit in Japan next month. 
Celina Yoon, KBS World Radio News.