The head of South Korea's central bank said Friday that uncertainties grew over the prospects for trade talks between the United States and China as U.S. President Donald Trump threatened to follow through on a plan to impose more tariffs on Chinese goods.
Bank of Korea (BOK) Gov. Lee Ju-yeol said, however, that financial authorities will closely monitor the U.S.-China trade talks and spare no efforts to stabilize the nation's financial markets.
"It is a fact that uncertainties grew over U.S.-China trade negotiations," Lee said at a meeting on financial and economic conditions. "However, we need to calmly watch because there is an expectation that the two nations will continue efforts to strike a deal."
China has warned it would retaliate if the U.S. goes ahead with the plan to increase tariffs on US$200 billion worth of Chinese imports.
South Korea's main KOSPI index sank more than 3 percent on Thursday over fears of a full-blown trade war between the U.S. and China.
The KOSPI index opened higher on Friday as investors hope for positive results from the trade talks between the U.S. and China, which are underway in Washington. (Yonhap)