S. Korea warns of global credit crunch, BOJ policymaker warned of recession

The Bank of Japan must brace for the risk of another recession by strengthening cooperation with the government's fiscal policy, a central bank policymaker warned in January at a rate review held before the coronavirus outbreak hit the economy.

SEOUL: South Korea's vice finance minister on Thursday said the government is preparing for a possible global credit crunch due to the disruptions caused by the coronavirus pandemic and vowed to deploy market stabilizing measures in a timely manner.

"It isn't just an issue for us (Korea) but foreign investment from equity are flowing out of the country across emerging markets and are adding pressures to stocks and FX markets," Kim Yong-beom said in a policy meeting.