(Updates with statement)
* U.S. rating cut won't deter S.Korea economic growth -vice
* S.Korea's trust in U.S. Treasures has not changed
SEOUL, Aug 7 (Reuters) - South Korean policymakers on Sunday
played down any likely impact on the economy following the
downgrade in U.S. credit ratings and told local investors not to
panic when financial markets reopen.
Global policymakers held an emergency conference call on
Sunday to discuss the twin debt crises in Europe and the United
States that are causing market turmoil and stoking fears of the
rich world sliding back into recession.
"It (the Standard and Poor's cut in the U.S. credit rating)
will have a limited impact on our economy, thus our judgement is
that local financial markets do not need to overreact to it,"
Vice Finance Minister Yim Jong-yong told a briefing after an
emergency economic meeting.
He said the U.S. rating cut would not derail the current
growth pattern in the export-led economy, considering its
reduced dependence on U.S. and European markets and resilient
industrial output and employment data.
The emergency meeting, attended by senior officials from the
finance ministry, Bank of Korea and the financial watchdog and a
financial regulator, came before the Bank of Korea reviews its
policy rate on Thursday.
Officials agreed to discuss measures if needed, Yim added.
Meanwhile, the government will continue to put policy
priority on fighting inflation and will not change its macro
economic policies, the ministry said in a statement.
Separately, Deputy Finance Minister Choi Jong-ku told
Reuters that South Korea's trust in U.S. Treasuries has not
changed, after a conference call with other G20 finance
"I expressed our country's position at the call that there
will be no sudden change in our reserve management policy," Choi
said, referring to the heavy weighting of U.S. bonds in the
country's more than $300 billion in foreign reserves.
"There's no alternative (to U.S. government bonds) that
provides such stability and liquidity," he added, declining to
elaborate on the G20 discussion.
(Reporting by Kim Yeonhee and Yoo Choonsik, editing by Jonathan
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