[Special Economy=Eunji Kim]Due to the plunging Chinese stocks and with North Korea detonating what it calls a “hydrogen bomb test,” Korea's stock market is facing some instability.

Consequently, the Korean government opened an emergency meeting to ease volatile economic concerns and with the Financial Supervisory Service, said the renminbi devaluation can bring bearish impact to Korea.

It's true that North Korea's recent action can bring temporary economic shock as well, but the above China's problem can cause more of a blow to the strength of Korea's economy.

On Monday, North Korea reported that it "successfully" conducted a “hydrogen bomb” test—a first for the reclusive regime.

That day, KCNA released a statement, saying, “The test means a higher stage of the DPRK's development of nuclear force... the DPRK proudly joined the advanced ranks of nuclear weapons states possessed of even H-bomb...[demonstrating] the spirit of the dignified nation equipped with the most powerful nuclear deterrent.”

According to North Korea experts, the hermit country's purpose was to gain attention ahead of Korean political candidate nominations and the U.S. election.

But, the question rises: was it really a "hydrogen bomb?" First, the making of this bomb is difficult—more so for a country with no advanced technology and poor economic standing. Also, for it to be this kind, the 5.1 earthquake caused in the aftermath was too small.

Now, this nuclear challenge has put the issue into the forefront once more. as China and America consider what punitive measures it will place, in return.

The Chinese yuan value is weakening at a faster rate than predicted. The People's Bank of China depreciated the renminbi by 0.22%, setting Monday as its standard. Furthermore, foreigners are increasingly investing in the renminbi, with this, the yuan fluctuation can amplify, considering other economic factors coming into play.

Experts say China is attempting to recover its poor export problem—the reason it is depreciating its currency. “China has decided on its yuan devaluation based on the slowdown in the economic growth rate,” said Ahn Yoo-hwa, a visiting researcher at Korea Securities Depository. “The economy is facing a difficult time and the strive for reforms is losing hope. With the plunging stock market, the Chinese government has put in this kind of measure to turn around the market.”

As this situation continues, Korea, which relies heavily on China for trade, can receive a disadvantage to its exports.

Knowing this, Korea's Financial Supervisory Commission said on Monday that it will hasten their meeting set up to discuss the current situation and seek for a solution for various economic risks, including the one described here.