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The U.S. Federal Reserve surprised investors last week by postponing the start of the wind
down of its massive monetary stimulus... but with the scale back still looming... Korea
is taking the necessary steps to protect itself.
The nation's finance minister has vowed to take both short and long-term countermeasures,
a so-called "2-track strategy",... to buffer the Korean economy against potential repercussions.
Yoo Li-an reports. 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.
As for the remainder of the year,... Hyun said other international factors will not
have much of an impact on the Korean economy.
The minister said the nation faces less risk from China's slow growth and is well prepared
for the Fed's plans to slash stimulus.
Meanwhile, Vice Finance Minister Choo Kyung-ho warned officials at the Bank of Korea and
the Financial Supervisory Service Sunday that uncertainties surrounding the U.S. stimulus
could remain until the end of this year or early next year.
The officials agreed to strengthen monitoring of its financial market and vowed to make
adjustments to its contingency plan depending on the market situation.
Yoo Li-an, Arirang News.