South Korean financial authorities are predicting that an interest rate hike in the United States won't result in foreign capital outflow.
 
The Financial Services Commission and the Financial Supervisory Service held a joint meeting on Wednesday morning to prepare for the possible rate hike. 
 
The watchdogs said that temporary instability in the South Korean stock market is unavoidable in the event of a rate hike, but that the local bourse will recover once uncertainties surrounding the rate clear up. 
 
The two also noted that U.S. investors are maintaining net-buying while Middle Eastern and European investors are also reducing selling. 
 
The government said, however, it will preemptively deal with slowing Chinese economic growth, low oil prices and other external risk factors.