Modern Business

Daejeon, South Korea: Asia is considered necessary to tighten control over the inflow of capital into this area which was considered too easy to go out quickly so that could destabilize financial markets.

Strategy and Finance Minister of South Korea Yoon Jeung Hyun expressed the need for world security network (global safety net) to tackle these capital flows.

“A number of developing countries would have the option to accumulate reserves in order to face the crisis. However, it is the high cost that is not the best choice. Global safety net is a good choice for all countries,” he said this afternoon.

He explained the IMF to prepare a more detailed plan to address capital flows that are too easy in and out and ensure global financial stability. However, IMF Managing Director Dominique Strauss Kahn assess actual Asia has shown resilience to the global financial crisis and even its economy continues to grow.

“The way to control the flow of incoming funds is of course dependent on each country, depending on the condition of each.”

Chief Investment Officer, China Investment Corporation Gao Xiqing said there should be cooperation between countries to solve the problems of protectionism and a weak social safety net.

“Countries in Asia should draw lessons from the past that shows domestic protection is not enough to endure external shocks. It should be no policy for dealing with capital inflows must have a concept of global financial safety net.”

According to him, this step will ensure economic growth as well as continue the policy of free trade and free markets.

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