A senior official at the International Monetary Fund (IMF) said that South Korea has maintained “strong economic fundamentals and ample buffers” to fight off any economic shock amid growing recession worries prompted by surging borrowing costs seen globally to corral inflation. Krishna Srinivasan, director of the IMF’s Asia and Pacific department, said that the country’s current account surplus and net foreign assets, which account for around 40% of gross domestic product, make up the key underlying support. Srinivasan said robust foreign reserves, nearly three times larger than the short-term debt, are the hedge against a potential currency crisis. Srinivasan backed the Bank of Korea’s aggressive campaign to tame soaring consumer prices, saying prioritising inflation control over shoring up growth was necessary.
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