Hyeon Oh-Seok, minister of Strategy and Finance, expressed concerns that the tapering of the US Quantitative Easing, or QE, is not only having a serious impact in already shock-stricken developing countries that are suffering from financial crises, but is also expected to cause a domino effect in more developed countries as well.
Hyeon Oh-Seok said on February 5 during a meeting of the Vice Ministers of the Economy, “The tapering of QE is expected to begin its course soon.” Then he stated, “Changes both in domestic markets and abroad will not have a negative effect on Korea’s economy, and we will act swiftly to minimize the negative impact.”
He also said, “Instead of acting on changing conditions as they come, we should rebuild our economy with a focus on changing our conditions from within, through enhancement of our domestic market.”
Yet, the atmosphere surrounding the financial markets is cloudy, and alarming signs are chiming across the globe. According to financial sources, China’s economy is visibly heading toward a downward spiral, and the manufacturing index of US industry is lower than expected, causing ripples throughout the world markets. This was reflected in Japan’s Nikkei Index, which fell by four percent following the latest crisis.