S Korea's financial market faces potential risks

South Korea's financial market is still facing "potential" risks despite its recent stabilization as eurozone debt problems continue to weigh on the overall economic conditions, the top economic policymaker said Wednesday. "Thanks to growing expectations for policy responses by major countries (to eurozone problems), the local financial market is gaining some stability but there is still potential cause for anxiety," Finance Minister Bahk Jae-wan told a crisis management meeting. "Since the eurozone crisis erupted, (our) industrial output, exports, imports and other major economic indicators are showing signs of losing traction," he added. His remarks are in line with the government's latest assessment of the economic conditions at home and abroad. On Tuesday, the ministry said in a green book report that the economy is facing heightened uncertainty due to worries over eurozone debt problems and slowdowns in major countries, South Korea's (Yonhap) News Agency reported. South Korea's financial market remains relatively stable despite strong headwinds from outside but concerns are linger that the small but open market is highly susceptible to external shocks. The Korean economy is also under pressure from falling demand in the global market amid protracted eurozone debt problems and concern over slowing growth in the U.S. and China. During the meeting, Bahk called for more efforts to effectively cope with a possible crisis situation down the road, while urging other government ministries and agencies to secure sufficient "policy capacity" to that end.