South Korea will strengthen monitoring on increasing liquidity in the country’s stock and real estate markets on concerns that it might hurt financial stability.
Liquidity has sharply increased due to fiscal stimulus and relief packages.
South Korea's benchmark KOSPI index broke 3,000 for the first time on Wednesday, as more capital was infused on expectations for export recovery.
According to Vice Finance Minister Kim Yong-beom, if South Korea's financial markets sustain advances, the success of containing the pandemic and the recovery of the real economy should be backed up.
Kim asked large conglomerates and institutional investors to follow the government’s lead in investing in future growth engines and sustainable growth initiatives.
For the real economy to pick up, South Korea will provide policy support for exports, such as chips, eco-friendly cars, and bio-health products.
In December, South Korea's monthly exports increased 12.6 percent on-year to reach $51.4 billion, marking the first time since November 2018 that export volume surpassed the $50 billion mark.
According to Kim, it is important to focus on risk factors that could occur during the process of economic recovery, including a shift in US monetary policy position which could come earlier than expected if inflation soon makes a comeback.


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