Second leg of subprime crisis underway: South Korea

SEOUL (Reuters) - The head of South Korea's financial regulator said on Tuesday that while ongoing financial market turmoil could be painful, he still sees many positive aspects in the local economy.

"The second leg of the subprime crisis has begun," said Jun Kwang-woo, the head of South Korea's Financial Services Commission told reporters. "It could be painful but a recovery, once in place, may be rapid."

Jun also said positive aspects for South Korea included a sound local financial sector and softening commodities prices.

(Reporting by Lee Chang-ho, writing by Rhee So-eui; Editing by Keiron Henderson)