S Korea announces steps to soften Brexit's financial impact

The South Korean Finance Ministry announced on Friday it will take all necessary steps to minimise, as far as possible, the impact of Brexit -- Britain's exit from the European Union (EU) -- on Seoul's financial markets and economy.

"We will take all necessary measures, including smoothing operations to soothe the foreign exchange market," said Vice Finance Minister Choi Sang-mok at an emergency meeting convened in Seoul, following indications of British citizens voting in favour of exiting the EU.

The Minister added that the government will boost "policy coordination with other ministries to keep the financial turmoil (stemming from the significant UK decision) from spreading to the real economy," EFE news reported.

Choi added that Seoul will verify the state of foreign exchange liquidity of domestic financial companies and monitor the currency market and foreign capital outflow to curb volatility.

The Bank of Korea also called a meeting to discuss possible ways to stabilise the money market in Asia's fourth largest economy.

Kospi, the main stock market index of South Korea, showed ups and downs during the entire trading session Friday, falling up to four percentage points before finally closing 3.09 per cent lower.

Meanwhile, Kosdaq fell 4.76 per cent, and financial authorities temporarily suspended trading to prevent a collapse.

--IANS

ksk/dg