South Korea calls meeting to check fallout from Dubai

Financial officials from South Korea's government and central bank will meet early on Monday to check the domestic impact from Dubai's debt crisis, the ministry of strategy and finance said on Sunday.                                           

Vice finance minister Hur Kyung-wook will host the meeting from 8 am (2300 GMT on Sunday), with officials from the Bank of Korea and economy-related ministries also attending, it said in a short mobile phone message sent to reporters. 

The meeting, at which participants will discuss the impact on the domestic financial sector from "the Dubai incident", will not be open to reporters but the ministry plans to issue a statement at the end, it said.                                          

The Financial Services Commission, the country's top financial regulatory agency, held its own meeting of officials on Sunday and said in a statement later there was little chance of a full-scale global problem stemming from Dubai''s debt crisis. 

"There's little chance that this problem would grow into a systematic risk on a global scale like the Lehman Brothers case did, according to the consensus," the FSC said. The FSC will also send a senior official to Monday's meeting.                                           

On Friday, the Seoul stock market hit a four-month closing low and the won  currency fell the most in more than four months against the dollar, hammered by concerns about Dubai's crisis. Financial and construction shares tumbled while local government bond prices soared on a massive flight to safely.                                          

"South Korea has small exposure for related assets and the economy and financial markets have shown a solid performance," the FSC said on Sunday.