External Content

The following content is sourced from external partners. We cannot guarantee that it is suitable for the visually or hearing impaired.

A Terminal High Altitude Area Defense (THAAD) interceptor arrives at Osan Air Base in Pyeongtaek, South Korea, in this handout picture provided by the United States Forces Korea (USFK) and released by Yonhap on March 7, 2017. USFK/Yonhap via REUTERS


SEJONG, South Korea (Reuters) - South Korea does not have firm evidence that China has retaliated for Seoul's deployment of a U.S. missile defence system so no action has been taken against Beijing yet, South Korea's finance minister said on Monday.

"If we want to take this into court, we have to have evidence but we don't have that yet so we cannot take action," Finance Minister Yoo Il-ho told reporters at his ministry.

"It's not as if we are standing still with the evidence in hand."

In recent months, China has pressured businesses doing business with and in South Korea, largely perceived as retaliation over deployment of the Terminal High Altitude Area Defence (THAAD) missile system, against Beijing's objections.

Beijing has not directly said it is targeting South Korean firms, although it officially objects to the THAAD deployment, which began last week.

Yoo said the government is trying to arrange a meeting with his Chinese counterpart at this weekend's Group of 20 finance ministers' meeting in Germany, but nothing has been fixed yet. He added Seoul would "confidently" take action against China if need be.

Meanwhile, South Korea's financial markets are maintaining steady trade flows after Friday's ouster of President Park Geun-hye, although economic uncertainties unrelated to the political scandal remain, Yoo added.

One of those risks is the U.S. Federal Reserve policy meeting this week, where interest rates are strongly expected to be raised, the minister said.

Yoo said a change in U.S. monetary policy could directly affect household debt in South Korea, which the government will try to continue managing.

(Reporting by Shin-hyung Lee and Christine Kim; Editing by Richard Borsuk)