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
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.
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