The International Monetary Fund says geopolitical risks, including North Korean aggression, have not had any significant impact on South Korea's trade and investments. 

During a news briefing at the IMF head office in Washington, Markus Rodlauer, deputy director of the agency's Asia-Pacific department, said South Korea's economy is "quite resilient to external shocks and tensions."

Historically, he said, this has been the case and the IMF expects that to continue, adding the Korean economy has "very strong buffers."

Rodlauer added, however, a sharp rise in U.S. interest rates is a major risk for South Korea's economy right now and going forward.

He also said South Korea is well prepared in the Asia-Pacific in terms of banks' capital ratio and foreign exchange rates.