Growing concern over Europe’s debt problems is fueling global market uncertainties that are affecting South Korea’s economy, a senior economic policymaker said Thursday.

In a weekly meeting of top economic officials, Finance Minister Bahk Jae-wan said political developments in some European countries are exerting a negative impact on the international financial market.

“Developments are raising market volatility and influencing foreign exchange rates,” he said.

He added that a slowdown in China’s economy and mixed U.S. economic data are heightening concerns of slower than expected global economic growth.

The policymaker said that while Seoul has been able to pull off three straight months of trade surplus, export growth has fallen off compared to the year before.

In the first four months of this year, South Korea’s exports reached $181.19 billion, for a gain of just 0.9 percent from a year earlier, while imports increased 5.5 percent to $177.37 billion for a combined trade surplus of around $3.8 billion.

Bahk, meanwhile, said that in order to maintain its growth momentum, South Korea should maintain steady output in the manufacturing and service sectors, and be ready to deal with any sudden shocks.

“The government will keep close tabs on foreign developments and strive to set up contingency plans to minimize fallouts,” he said. 

(Yonhap News)