## Safe-Haven Korea? - Spillover Effects from UMPs

_IMF Working Papers, April 3, 2014_

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## Bibliographic details
- Authors: Jack J Ree, Seoeun Choi
- Published: April 3, 2014
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484349878.001

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### Overview
- Authors: Jack J Ree, Seoeun Choi
- Publication date: April 3, 2014
- Series: Working Paper No. 2014/053
- Issue: 053
- Volume: 2014
- Pages: 35
- DOI: https://doi.org/10.5089/9781484349878.001
- Stock No: WPIEA2014053
- ISBN: 9781484349878
- ISSN: 1018-5941

### Research question and context
- Examines how Korea’s capital flows and trade have been affected by:
  - quantitative easing (QE) of the United States
  - quantitative and qualitative easing (QQME) of Japan
- Korea is characterized as borderline between advanced and emerging market country groups and commonly perceived to compete fiercely with Japan in world trade.

### Key findings
- Impact of U.S. QE on Korea:
  - QE had little direct impact on capital flows to Korea.
  - Tapering of U.S. QE is unlikely to cause capital outflows from Korea owing to partial safe-haven behavior of capital flows to Korea.
- Impact of Japan’s QQME on Korea:
  - Exchange rate spillover from QQME to Korea has been limited on both trade and capital flow fronts.

### Subjects and keywords (as listed)
- Subject: Balance of payments, Bonds, Capital flows, Exchange rates, Exports, Financial institutions, Foreign exchange, International trade, Monetary policy, Stocks, Unconventional monetary policies
- Keywords: Asia and Pacific, Bonds, capital flow, Capital flows, Exchange rates, Exports, Foreign Value-Added, Global, Korea's export, Korea's gain Japan's loss, market share gain, QE exit, safe-haven Korea, spillover, trade, Unconventional monetary policies, Unconventional monetary policy, value chain, world market share, WP, yield curve

### Implications (as conveyed by the authors' findings)
- Korea exhibits partial safe-haven characteristics in capital flows, which may buffer it from capital outflows associated with U.S. QE tapering.
- Limited exchange rate spillovers from Japan’s QQME suggest modest direct competitive effects of QQME on Korea’s trade and capital flows.

*IMF Working Paper No. 2014/053 — Jack J Ree and Seoeun Choi, April 3, 2014*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/safe-haven-korea-spillover-effects-from-umps-41461_