The Seoul economy was unharmed on Friday despite the failed rocket launch by North Korea in the morning, with the country’s benchmark bourse regaining the 2,000-point level after four days.

The Korea Composite Stock Price Index closed at 2,009.91, up 22.28 points, or 1.12 percent, from the previous day.

The local currency finished at 1,134.8 won to the U.S. dollar, down 5.8 won from Thursday’s close.

Senior financial policymakers here had already predicted that North Korea’s provocation would have a limited impact on the South’s economy.

“The launch had been expected and the risk factor was already reflected in the market,” said an official from the Financial Services Commission.

“Financial policymakers are closely monitoring possible fallout, but no impact on the market has been observed so far.”

The FSC pointed out that past provocations such as launching of rockets by the communist country have not significantly affected the local market.

The Bank of Korea also said that it is keeping tabs on the impact of the rocket launch on the stock, bonds and foreign exchange markets.

The BOK said a 24-hour watch will be maintained with close cooperation of the government to deal swiftly with any sudden developments.

“Judging from past experience, there should be little adverse effect on the market,” said Pak Won-shik, a senior deputy governor at the central bank.

This view was echoed by vice Finance Minister Shin Je-yoon, who said the market is strong enough to withstand any shock from the launch.

He, however, stressed that while there were no serious repercussions, Seoul is ready for any contingencies.

The official said that if the need arises, the government will take steps to prevent the incident from affecting the overall economy.

By Lee Ji-yoon and news reports
(jylee@heraldcorp.com)