South Korea focuses on risk management

Bloomberg reports.

South Korea's four leading financial services companies will place this year's management priority on controlling risks stemming from potential global financial turbulence, Yonhap News says.

Woori Finance Holdings, the country's largest financial services company by assets, will reinforce its management against risks involving small and medium enterprises (SMEs) and households, according to its chairman.

"Credit risks of SMEs and households are expected to increase, so we should pre-emptively manage potential risk factors," adds chairman Lee Pal-seung.

Businessweek states that the Bank of Korea forecasts the country's economic growth will slow to 3.7% this year from 3.8% last year.

The commission will encourage local lenders to have enough foreign currency liquidity during times of emergency to avoid the massive capital inflows and outflows that exacerbated the country's financial crisis in 2008.