S.Korea to take action on abnormal capital moves

September 7, 2009

KOREA    SEOUL, Sept 7 (Reuters) – South Korea will take aggressive actions if there are any abnormal movements in capital, its top financial regulator said on Monday, amid growing concerns about adverse effects from abundant short-term liquidity. “As for the trends in short-term funds, household debts and corporate lending, we will conduct vigilant monitoring and take aggressive actions on any tipping effect or abnormal movement of capital,” Chin Dong-soo, chairman of the Financial Services Commission, told reporters.
   The commission’s implementation arm, the Financial Supervisory Service, expanded from Monday limits on mortgage lending to the whole of the capital Seoul and two adjacent areas to put a brake on growing home-backed borrowing. (Reporting by Yoo Choonsik; Editing by Jonathan Hopfner) ((choonsik.yoo@thomsonreuters.com; +82 2 3704 5580; Reuters Messaging: choonsik.yoo.reuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com)) Keywords: FINANCIAL/KOREA CAPITAL 
  
Monday, 07 September 2009 04:40:00RTRS [nSEW000134] {C}ENDS

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