The South Korean government says that risks related to North Korea have limited effects on the domestic financial market, noting the steady flow of foreign investments.
 
The government delivered the assessment in an intragovernmental meeting reviewing geopolitical factors’ impact on the nation’s financial and foreign exchange markets on Wednesday.
 
The meeting also discussed how to respond to possible market fluctuations brought about by the so-called North Korea risk, with officials from the Financial Services Commission, the Bank of Korea, the Financial Supervisory Service and the Korea Center for International Finance in attendance.
 
The participants noted that there are concerns about North Korea-related geopolitical risks and rumors of an impending crisis on the Korean Peninsula, as volatility is increasing in the financial and currency markets on the heels of the U.S.’ military strike on Syria. However they concluded that such risks have shown limited effects.
 
More intragovernmental financial meetings will be convened to closely monitor the financial and foreign exchange at home and abroad and foreign currency liquidity at domestic financial institutions.
 
The government plans to frequently hold emergency task force meetings to review potential risks on the financial market and the real economy. 

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