Reuters
Published Jul 06, 2019 11:12PM ET
South Korea assessing financial sector risks of wider row with Japan
SEOUL (Reuters) - South Korea is assessing the risks of a row with Japan over forced wartime labor spreading to the financial sector, including loans and investments by Japanese institutions, the financial regulator said.
Japan last week imposed tighter curbs on exports of high-tech materials to South Korea for making smartphone displays and memory chips. The action triggered calls in South Korea for a boycott of Japanese goods.
Speaking to reporters on Friday, the chairman of South Korea's Financial Services Commission was asked if the dispute could affect investments and loans by Japanese institutions.
"I don't know which additional measures there are for Japan to take next, but government ministries are checking the situation in that regard," Choi Jong-ku said in remarks that were not allowed to be published until Sunday.
In a worst-case scenario, Japanese lenders could refuse to roll over maturing debt or stop providing new loans, Choi said.
"It's unclear how likely such a situation would happen, but there will be no big problem," Choi said.
The forced wartime labor issue is the latest flashpoint in a relationship long over-shadowed by South Korean resentment of Japan's 1910-1945 occupation of the Korean peninsula.
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.