Financial authorities say recent stock market plunge excessive, vow implementation of value-up funds
Officials check market trading situations at a dealing room of a Hana Bank branch, Seoul, Nov. 18. Yonhap.
Korean financial authorities said Monday the recent stock market plunge was excessive, given economic fundamentals, vowing to enhance market monitoring and swiftly implement a policy fund to strengthen valuation of local companies.
The message was released during an interagency meeting among chiefs of the Financial Services Commission (FSC), Financial Supervisory Service (FSS) and the Korea Exchange (KRX), as well as market experts and relevant institutions, in Seoul, in response to steep losses incurred in the local stock market.
The Korea Composite Stock Price Index (KOSPI) plunged to nearly a yearly low last week amid concerns about broader implications of a second U.S. administration under former President Donald Trump on the Korean economy and businesses.
"Uncertainties remain high at home and abroad. We will be on extra alert and closely monitor the market situations," FSC Chairman Kim Byoung-hwan said.
"It is necessary to swiftly implement corporate value-up funds. The government is ready to take a range of market stabilization measures, when necessary," he added.
The KRX and other institutions are working to create a policy fund worth 200 billion won ($144 million) together with the private sector, which is meant to support corporate efforts to boost their market value.
FSS Gov. Rhee Bok-hyun pledged to take "sufficient and instant" steps against market jitters and stressed zero-tolerance for any illegal tradings.
The KOSPI sank 5.63 percent over the past week to end at 2,416.86 on Friday, with tech giant Samsung Electronics Co. dipping below the 50,000 won level for the first time in nearly 4 1/2 years. (Yonhap)