North’s rocket launch won’t rattle financial markets

North Korea’s launch of a long-range rocket will likely have a limited impact on the Korean financial market if past experience is any indication, Seoul’s financial authorities said yesterday.

North Korea announced on Dec. 1 that it would put a “working satellite” in orbit between Dec. 10 and 22. The international community is pressuring the North to call off the plan, claiming that it is a disguised test of the country’s long-range missile technology.

“In light of past experiences, there will not be much volatility in the local financial market even if North Korea’s rocket blasts off,” the Financial Services Commission and its executive body Financial Supervisory Service said in a statement.

The regulators said the impact will be further limited if Pyongyang fails again with its rocket launch like it did in April. According to the regulators’ report, the benchmark Kospi instead gained 1.12 percent and the South Korean won strengthened about 0.5 percent to the U.S. dollar at that time.

Global investment banks had a similar forecast. Yonhap