Global finance chiefs must work together to make sure the end of Federal Reserve bond buying does not weaken economic recovery in other nations, South Korean Finance Minister Hyun Oh-seok said.

The Group of 20 needs to coordinate how to handle scaled- back monetary stimulus from the U.S. once its recovery is secure, Hyun said in an interview in Moscow.

If not handled carefully, a Fed move away from quantitative easing threatens to slow growth in other nations, which in turn would damp U.S. expansion, he said.

“Although the unwinding of the QE has not taken place yet, there has to be some fine coordination in terms of its timing and extent,” Hyun said. “The question is not whether the impact is going to be big or small, but just that it does serve as a risk factor and it is very important for us to discuss ways to absorb such a shock and possibly mitigate such a shock.”

G20 finance ministers and central bankers gathered in Moscow on Friday to assess how the world economy is responding to efforts in the U.S., Japan and Europe to restore growth. Fed Chairman Ben S. Bernanke signaled this week that the U.S. may soon be able to curb its stimulus efforts, while European Union policy makers remain concerned about spillover effects from Japan’s efforts to jumpstart its economy.

“There has been negative impact,” although not as much on South Korea as on other countries, Hyun said. Also, any change in Fed policy would be the result of a stronger U.S. economy that also may boost exports elsewhere.

South Korea is trying to strengthen its own economy by boosting housing and working to stabilize its foreign-currency market, Hyun said.

“We must never be complacent, so we will have to make sure that any impact from the tapering of quantitative easing will be minimized on the financial and currency market of Korea,” Hyun said. (Bloomberg)