As shown during the recent global crisis, however, as a small open economy, Korea can inevitably suffer massive shock even despite its greatly increased foreign reserves – due to abrupt outflows of overseas capital caused by international financial market turbulence. The drive for international policy cooperation must consequently be strengthened still further, in concert with individual countries’ own efforts for financial stability.
The Bank of Korea will pursue its policy cooperation with other central banks more resolutely. It also needs to play an active part in the international discussions on such issues as construction of a global financial safety net and the framing of preventive measures against crisis recurrence.