S. Korean President calls for credit crisis plan

South Korea's President called for his economic ministers to prepare a contingency plan to protect the country against the worst-case scenario of the US financial industry turmoil.

The President, Lee Myung-bak, said authorities should provide fully-fledged support for local financial institutions and companies to secure dollars in the market, a statement from the presidential Blue House said.

Mr Lee also proposed that the finance ministers of South Korea, Japan and China meet to coordinate responses to the financial crisis and global downturn that has sent markets reeling since the collapse of investment bank Lehman Brothers.

"All related offices should respond confidently but without being complacent, and need to come up with a step-by-step contingency plan against a possible worst-case scenario," Mr Lee said following a meeting with economic ministries and the financial watchdog.

He asked the ministers to "make sure to help raise foreign currency and study ways to improve related regulations if necessary."

Global investors have rushed to withdraw money from South Korea and other emerging markets as the global credit crisis dried up liquidity elsewhere, leaving many small Korean companies short of dollars.