South Korea Facing Trade and Financial Sector Headaches due to Abenomics

Prime Minister Shinzo Abe’s policies to revive Japan’s economy are proving to be problematic for neighboring South Korea, said the head of the country’s financial regulator as a weak yen poses a threat to Korea’s export competitiveness.

“We have two channels through which ‘Abenomics’ affects the Korean economy – trade and financial sector,” Je-yoon Shin, chairman of South Korea’s Financial Services Commission told CNBC Asia’s “Squawk Box” on Friday. Exports account for around half of the country’s gross domestic product (GDP).

Given both South Korea and Japan economies rely on their export sectors for growth, depreciation in the yen which boosts the latter’s export industry, presents a challenge for the former.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza