South Korean deputy prime minister for economy Yoo Il-ho said authorities will act “fast and resolutely” to stabilize the market “when necessary” in an economy-related cabinet meeting following the upset U.S. presidential election outcome.

The government’s watch committee will be expanded to keep close monitoring on overall economic activities as well as the capital and foreign exchange market, he said on Thursday.

Authorities will keep close watch on the foreign-debt holdings at banks and try to secure more foreign-currency assets to prepare for any emergency liquidity crunch, he said.

The Seoul bourse recovered from Wednesday’s initial shock, relieved by Trump promise to get along well with other nations and unite the nation from the election divide. At 1:00 p.m., shares of the Korean Composite Stock Price index gained 1.8 percent to 1,993.8, compensating for 2.25 percent loss on the previous day. The secondary Kosdaq index also was up 3.1 percent to 618.74.

Presidency under Donald Trump who had been blatantly hostile towards other trade powerhouses and protective of local jobs and industries would affect Washington’s economic and trade policy and augment uncertainties on the global economic front already murky with the British decision to leave the European Union and slowdown in China, he said.

Key platforms of Trump included revisit and possible withdrawal of multilateral and bilateral trade agreements including the bilateral free trade agreement with Korea. Protectionist policy would deal as a heavy blow to Korea that relies heavily on the U.S. market.

“We will closely study the ramifications on exports, trade, and overall economy by examining the U.S. president-elect’s campaign platforms in details,” he said.

Korea will mull ways to boost trade and investment in the United States as Trump has promised to bolster public infrastructure projects and manufacturing to aid U.S. jobs, he said.

By Cho Si-young

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]