Even though, Asia has been lately emerging as a worldwide monetary power house, but due to the rising capital inflows, it may also face a lot of policy challenges. Thus, International Monetary Fund's (IMF) Chief has cautioned it for any possible shocks from Europe.

The IMF had helped many Asian countries to be saved from the huge fiscal disaster that had taken place in the continent in 1997-1998. Managing Director Dominique Strauss-Kahn admitted about this help, and further added that this assistance led to the region becoming sounder.

A conference was co-hosted by the IMF and the South Korean Government in the central South Korean city of Daejeon, in which Strauss-Kahn revealed that plans were being worked upon in order to improve the prevalent lending facilities. The details will be disclosed by November, this year.

He further added, "We may have made mistakes. Who doesn't? We have learned how big the danger of volatile capital flows is and how big those capital flows may be".

Also, in this conference, IMF was again asked by South Korean Finance Minister Yoon Jeung-hyun, to help in any other financial crisis, if it happens in future. The country also called for its fortified network of financial safety nets.