Geopolitical uncertainties related to N. Korea negatively affects S. Korea's real economy: BOK economists
- 6 years ago
"北 관련 지정학적 불확실성, 우리 실물경제에도 부정 영향 미친다"
The geopolitical uncertainties caused by North Korean provocations negatively impacts Seoul's economy.
That's according to a report by Economists at South Korea's central bank.
That an increase in uncertainty, measured by a an implied volatility of 10 percent on Seoul's main stock index, the KOSPI, caused, a Point-2 percent dip in the consumer price index and a Point-3 percent fall in industrial production after a lag time of 2 to 3 months.
The BOK looked into 40 tension-increasing events related to the regime from 2003 to 2017, such as missile and nuclear tests.
According to Lee Seo-hyun, one of the report's authors, heightened geopolitical tensions on the peninsula also led to fall in stock prices, depreciation of the local currency, and capital outflow.
The geopolitical uncertainties caused by North Korean provocations negatively impacts Seoul's economy.
That's according to a report by Economists at South Korea's central bank.
That an increase in uncertainty, measured by a an implied volatility of 10 percent on Seoul's main stock index, the KOSPI, caused, a Point-2 percent dip in the consumer price index and a Point-3 percent fall in industrial production after a lag time of 2 to 3 months.
The BOK looked into 40 tension-increasing events related to the regime from 2003 to 2017, such as missile and nuclear tests.
According to Lee Seo-hyun, one of the report's authors, heightened geopolitical tensions on the peninsula also led to fall in stock prices, depreciation of the local currency, and capital outflow.