The government sees little chance of capital outflow due to a reversal in key interest rates between South Korea and the U.S. 

The Finance Ministry and related agencies held a meeting on Thursday and went over the results of the U.S. Federal Open Market Committee’s meeting for March and discussed response measures. 

The government said that roughly 85 percent of assets invested by foreigners in South Korea are stocks which rely on Korea’s economic conditions and corporate earnings outlooks. It said the remaining 15 percent are mostly mid- to long-term investments in bonds made by major central banks and sovereign funds. 

As a result, the government projected that a higher U.S. interest rate than South Korea’s is unlikely to lead to a sudden capital outflow.

The government said market concerns over the U.S.’ latest interest rate hike are expected to subside but stressed the need to be on guard.