Every body seems to be worried by the U.S mortgage crisis and Financial Supervisory Service or FSS is keeping a watch on the sub prime mortgage defaults in the U.S and are trying to figure out whether it could have an effect on the overseas branches of Korean financial institutions.
As per FSS official:
The request was a preventative measure to manage a possible risk. We believe that Korean financial institutions don’t directly participate in the U.S. mortgage market and their investments would be small.
A close watch is being kept on the situation since if the U.S. sub-prime mortgage default moves further it may lead to the foreign capital moving out of the country and cause the Korean stock market to plummet. As a result besides Korea even other countries are keeping a tight vigil on this situation since it could have a ripple effect on their economies too.
Via chosun
