South Korea holding emergency talks

With Asian markets in turmoil, South Korea’s policy makers are now taking emergency action in order to deal with plummeting share prices and a very fragile situation as both business and consumer confidence have been hit hard recently.

Shares are now at a three year low, and it has been the worst decline since 1997 and, as a result, policy holders in South Korea are holding an emergency summit today in order to discuss relief measures.

Finance Minister Kang Man-soo did not reveal any further details as to the planned action, although media reports suggest that the move could include extra funding for local banks and the larger financial institutions are no longer able to lend to them.

The fear that banks will struggle to refinance their debt, has meant that there is a looming problem to the financial system and this could damage the economy’s 10-year expansion plans and further put Asia in turmoil.

It has been a tough time of late both for the South Korean economy as well as its currency

The won is the worst-performing currency in Asia during 2008 but it has recouped nearly 3 percent at 1,333.8/5.2 to the dollar after yesterday’s 10 percent fall.

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