The inability of Greece to pay back money owed to the International Monetary Fund will have a limited impact on the South Korean economy, the government said Wednesday.
  

The Washington-based lending agency said Greece is currently in "arrears" after missing its payment of 1.5 billion euros ($1.67 billion) that came due on Tuesday.
  

"Most observers predicted that Athens will miss the repayment deadline," a finance ministry official said. He pointed out that while the country did not pay the IMF on time, it is still not technically in default.
  

A default is only declared if the country cannot pay back money owed to private sector creditors.
  

The official, who declined to be identified, said that for now, South Korea's financial sector is feeling less jitters compared to other Asian and European markets.
  

"It is the view of the government that there is no need to draw up any detailed action plans to counter possible fallout at this juncture," the official said.
  

Starting on Monday, the government set up a special review panel made up of officials from the finance ministry, the Bank of Korea, the Financial Services Commission and the Financial Supervisory Service to check developments taking place in Greece and the financial market as a whole.
  

Most experts pointed out that there is not much trade between South Korea and Greece, and because of Seoul's solid fiscal health, there is little risk of sudden capital flight. Greece accounted for 0.2 percent of South Korea's outbound shipments last year.
  

The review panel, however, said it is keeping close tabs on developments and will take steps if the situation becomes more serious. (Yonhap)