Surge of financial market volatility cannot be ruled out amid U.S.- N. Korea tension…

Seoul’s finance chief warned other cabinet
ministers of the potential impact Pyongyang’s latest provocation could have on the local
financial market. But with the government working on its budget
for next year there was plenty more to discuss too, including how to cover expenses for the
new welfare programs. Oh Soo-young fills us in. Amid rising geopolitical tensions after North
Korea’s ICBM tests last month,… South Korea’s finance minister Kim Dong-yeon
has warned that a surge of volatility in the financial market cannot be ruled out. Speaking at an economic meeting with his government
counterparts on Monday,… Kim noted that while North Korea’s provocations, in the past,
had limited impact on the markets,… there has been an escalation of global uncertainties
this time around– making the market’s reaction all the more sensitive to shocks. Seoul’s local stock markets and currency took
a tumble after U.S. President Trump warned there would be severe consequences for Pyongyang,…
if it carries out a strike on American soil. The finance chief said Seoul will work around
the clock to monitor the economy and financial market, as well as global developments. Another major point of discussion during the
meeting was the government’s budget plan for next year,… which is set to be finalised
by the end of the month. The finance minister had suggested, last week,…
a significant cut of 9-point-7-billion U.S. dollars in government expenditure,… 2 billion
dollars more than initially planned. This would support the government’s five-year
policy agenda of achieving a “paradigm shift” to resolve the country’s chronic socioeconomic
problems of low growth and income polarization– by boosting job creation and welfare. “The government intends to maintain the soundness
and stability of its finances and national debt,… all while fulfilling its promises
to the people.” Regarding the government’s plans, announced
last week, to expand basic livelihood support, Kim said that the costs were already reflected
in the comprehensive national policy agenda’s budget. Meanwhile, widening health insurance coverage
would be backed with greater support from the national treasury as well as an increase
in premiums. He added that various ministries have been
fine-tuning the details of increasing basic pension payouts and child care benefits,…
which will be released in the near future. Oh Soo-young, Arirang News.

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