Regarding North Korea’s launch of a long-range rocket, the FSC has convened an Emergency Meeting this morning discussing the possible effects to Korea’s financial markets and countermeasures for any excessive volatility.
We have concluded that the effects to the financial markets will likely be very minimal because of the following reasons:
- The risk factor for the event has already been reflected on the market because the announcement of the rocket launch in March.
- Previous events of North Korea’s rocket launch have been followed by a quick recovery in the market.
*a five-day movement right after previous rocket launching events (KOSPI/FX currency):
- August 1998: +3.1% /-0.52%
- March 2003: -1.5% / +0.70%
- May 2005: +1.8% / -0.32%
We intend on closely monitoring the market and act quickly to minimize any uncertainties.
Emergency Financial Monitoring Team has already been launched and will be operating 24/7.
* Please refer to the attached file below.
We have concluded that the effects to the financial markets will likely be very minimal because of the following reasons:
- The risk factor for the event has already been reflected on the market because the announcement of the rocket launch in March.
- Previous events of North Korea’s rocket launch have been followed by a quick recovery in the market.
*a five-day movement right after previous rocket launching events (KOSPI/FX currency):
- August 1998: +3.1% /-0.52%
- March 2003: -1.5% / +0.70%
- May 2005: +1.8% / -0.32%
We intend on closely monitoring the market and act quickly to minimize any uncertainties.
Emergency Financial Monitoring Team has already been launched and will be operating 24/7.
* Please refer to the attached file below.