Gov’t to preemptively act if market volatility surges
[THE INVESTOR] Korea’s financial regulator said on June 11 it will preemptively act if swings on financial markets deepen amid the recent tumult in emerging markets such as Argentina and Turkey.
Korea’s exposure to four nations -- Argentina, Turkey, Brazil and Indonesia -- stood at US$13.2 billion at the end of March, accounting for 5.6 percent of the nation‘s total external assets, according to the Financial Supervisory Service.
The nation’s holdings in Argentina and Turkey reached US$1.37 billion, accounting for 0.6 percent of the nation’s total external exposure, the FSS said in a statement.
Also, its exposure to four European nations -- Italy, Spain, Greece and Portugal -- stood at US$2.31 billion.
The total external exposure of US$233.5 billion accounted for 6.7 percent of domestic banks’ total assets, the FSS said.
By Song Seung-hyun and newswires (firstname.lastname@example.org)