South Korean economy faces various risk factors at home and abroad despite foreign investors'recent positive stance on the nation's financial market, the top financial regulator said Friday. "Foreign investors are taking more positive stance on South Korea. Since the beginning of this year, the KOPSI rose and the dollar/won exchange rate fell on the reflection of the positive stance," Financial Supervisory Service (FSS) governor Kwon Hyouk-se said in an opening speech at the seminar held in central Seoul.

Kwon, however, noted that the market outlook seemed not to be bright due to various risk factors at home and abroad. On the global outlook, the governor cited the lingering European fiscal crisis and rising oil prices as the threat to the global economy.

On the domestic front, Kwon said that there are both economic and political risks existing. Slowing exports, weak domestic demand and growing household debts were cited as difficulties for the economy along with the general and presidential elections that may hamper the implementation of policy measures.

The governor forecast the Asia's No.4 economy will encounter some headwinds and volatilities this year in the financial market due to the external risk factors, but he stressed that foreigners will think of the country as growth market.

Meanwhile, Stephen Lacky, chairman of BNY Mellon Asia Pacific saw the South Korean financial market from the positive perspective. "South Korea's financial system becomes healthier. Our bank's expansion of the Seoul office reflects our strong confidence on the long-term growth of South Korean economy," Lacky said at the seminar.

The head, however, pointed out the potential risks factors, saying that slower pace of global growth in recent years was associated with European financial stresses and uncertainties in the Middles East.