Korean governor criticises local crisis resolution

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The governor of the Bank of Korea, Choongsoo Kim, on September 24 said the resolution of the European debt crisis could trigger negative spillover effects on emerging market economies.

Speaking at a Seacen-BIS executive seminar in Busan, Kim said the eurozone countries are working towards a local equilibrium that is likely to remain unstable. Emerging market economies (EMEs) could be impacted, he said, with the excessive provision of capital to emerging markets, making them more volatile.

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