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INTERVIEW-S.Korea fin min says more forex steps possible

Published 01/28/2010, 05:18 AM
Updated 01/28/2010, 05:21 AM

SEOUL, Jan 28 (Reuters) - South Korea's Finance Minister Yoon Jeung-hyun said more steps could be taken to enhance the soundness of foreign currency assets in the domestic financial sector.

Yoon said on Thursday that local and foreign banks would be treated equally in the event of any changes, although the country did not plan to impose any direct controls on foreign currency flows.

"We can strengthen parts of measures to bolster soundness. If we implement any, local and foreign banks will be treated the same," Yoon told Reuters in an interview.

Yoon also warned against any early South Korean interest rate increases, saying now was not the time for higher rates.

The government also needed to prepare measures to offset the possible impact of tightening measures by China, the country's largest export market, he added.

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