Korea to take countermeasures against U.S. tapering of stimulus program
Finance Minister Hyun Oh-seok has stressed the country must keep its guard up against the Federal Reserve's plans to wind down its stimulus program.
In an interview with Seoul-based Yonhap News Agency Sunday, Hyun said the Fed's decision last week to put off winding down its stimulus until it sees more improvement in the economy is an evident indication of the tapering that is to come.
Hyun said he will implement a "two-track strategy" -- short-term countermeasures to ensure macroeconomic stability in the face of a shock, and long-term countermeasures to strengthen the nation's economic structure.
More specifically, Hyun said he will aim to keep the current account surplus at an appropriate level, and continue to manage household debt and short-term foreign debt.
With fears of a slowdown in China subsiding, the minister said Korea faces fewer outside risks for the remainder of the year.
Nevertheless, Vice Finance Minister Choo Kyung-ho and officials of the Bank of Korea and the Financial Supervisory Service Sunday agreed uncertainties surrounding the U.S. stimulus could remain until early next year.
Yoo Li-an, Arirang News.
Reporter : Lian.firstname.lastname@example.org