| SEOUL, July 4
SEOUL, July 4 South Korea along with other G20
members will seek clarity on the U.S. Federal Reserve's exit
strategy on stimulus policy at the G20 ministerial meeting later
this month, the country's finance minister told Reuters on
"There will be discussions about how the U.S. will be
unwinding (QE) if the U.S. economy does recover, as well as what
the financial market impact will be when the unwinding takes
place," Minister Oh-seok said in an interview.
He added South Korea would also raise the issue because if
the unwinding causes troubles to emerging economies, that will
in turn affect the U.S. economy in what he called a "reverse
Finance ministers and central bank chiefs from the Group of
20 advanced and major developing economies plan to hold a
meeting in Russia on July 19-20.
South Korea and other Asian markets were recently hit by the
prospects of the U.S. Federal Reserve starting to taper its
massive bond-buying programme later this year, with bond market
yields rising sharply, stock markets tumbling and their
respective currencies falling against the dollar.
Though South Korean policymakers say that the country's
fundamentals are strong and that there was no surge in capital
outflows despite concerns about the Fed's unwinding, they remain
concerned about the cumulative effects of such policy in
conjunction with other factors such as Japan's aggressive
"As the previous meeting when the matter of spillover effect
was discussed, a G20 level message on how policy should be
conducted with the overall global economy in mind and how timing
of such policies can and should be adjusted based on such
conditions is being considered," Hyun said.
The minister said there will be discussions at the G20 about
the basis under which the Fed will start unwinding its monetary
stimulus, how such tapering will be implemented and at what pace
the central bank will start reducing its bond purchases.