The FSC Vice Chairman Choo Kyungho convened an FSC/FSS emergency meeting at 2:30 pm after North Korea had conducted underground nuclear test Tuesday on February 12, 2013 to discuss the effects of the nuclear test on Korea’s financial market and measures to be taken to keep market stability.
Right after North Korea’s nuclear test was reported, the KOSPI temporarily fell by 10 points but instantly bounced back.1 Foreign exchange market also remains stable with a net capital inflow from abroad.
As the nuclear test has been widely expected, Korea’s financial market maintains its stability even after the event was confirmed. North Korea’s previous nuclear tests had a limited impact on Korea’s financial market, which had been temporarily affected but quickly recovered to normal conditions prior to the events.
<Effects of North Korea’s previous nuclear tests on Korea’s financial market>
|
|
t* |
t+1 |
t+7 |
t+15 |
t+30 |
|
|
1st Nuclear
Test (October 9, 2006) |
KOSPI |
-2.41% |
-1.75% |
+0.17% |
+0.30% |
+3.71% |
|
USD/KRW |
+1.54% |
+1.10% |
+0.66% |
-0.47% |
-1.45% |
|
|
2nd Nuclear
Test (May 25, 2009) |
KOSPI |
-0.20% |
-2.26% |
+0.79% |
+0.62% |
+1.79% |
|
USD/KRW |
+0.09% |
+1.21% |
-1.14% |
+1.17% |
+1.69% |
|
The FSC/FSS will continue to monitor domestic and overseas financial market situations and execute contingency measures to keep market stable if needed.
*Please read the attached file for details.