S. Korea dismisses worry about another foreign exchange crisis

Source: Xinhua| 2017-10-13 19:02:29|Editor: liuxin
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SEOUL, Oct. 13 (Xinhua) -- South Korea's presidential Blue House on Friday dismissed worries about the breakout of another foreign exchange crisis, stressing the soundness of economic fundamentals.

Hong Jang-pyo, senior secretary on economic affairs for President Moon Jae-in, told a press briefing that the fundamentals of the South Korean economy were robust and firm despite risks caused by the Democratic People's Republic of Korea (DPRK)'s nuclear program.

Hong said the economy maintained a growth momentum with solid exports and investment, which led to a growth rate in line with the government's forecast.

The press briefing was held in response to some concerns that the economy may fall into the so-called second foreign exchange crisis.

South Korea depended on bailout loans from the International Monetary Fund (IMF) after the 1997 foreign exchange crisis occurred.

The presidential secretary said South Korea's exports hit a record high in September and kept an upward trend for 11 months in a row, allaying the crisis concerns that were estimated to have spread among speculative investors.

Facility investment, Hong said, posted a double-digit increase for the 10th consecutive month, while the IMF raised its growth outlook for the South Korean economy to 3 percent for both this year and next year.

The main KOSPI index inched down Friday, after keeping a record-breaking trend for two trading days, said Hong who emphasized the global credit rating firm Fitch's recent re-affirmation of South Korea's sovereign rating at AA-, the fourth highest in its rating tier.

He noted that risks at home and abroad stayed at a manageable level, adding that there was no possibility for another economic crisis to break out in South Korea.