What measures is the Korean government taking to calm stock market volatility?

The government said it is responding swiftly to stabilize the market and improve the structural health of the capital market. It also announced restrictions on transactions involving single-stock leveraged ETFs, which have been widely viewed as a key factor behind the volatility.

What role did Samsung Electronics and SK hynix play in the market swings?

The finance minister said single-stock leveraged ETFs linked to Samsung Electronics and SK hynix, introduced in May, were widely seen as a key factor behind the recent domestic market volatility. The article says the government moved to curb that volatility with restrictions on those products.

Finance minister voices confidence in economy, vows efforts to stabilize stock market

Q: Why is Korea’s finance minister confident about the economy in 2026?

Koo Yun-cheol said real-economy and macroeconomic indicators are all trending upward, including growth, exports, inflation, and consumer and business sentiment indexes. He said the economy is achieving unprecedented results on the back of solid growth and exports.

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Summary

Finance Minister Koo Yun-cheol said in Seoul that Korea’s economy is stronger than ever and is showing unprecedented results. He cited solid growth, exports, inflation, and sentiment indicators, while saying the government is working to stabilize recent stock market volatility. The government also announced measures including restrictions on single-stock leveraged ETFs tied to Samsung Electronics and SK hynix.

Key Facts

The government raised its 2025 growth forecast to 3 percent from 2 percent last month.
Asia’s fourth-largest economy expanded 3.8 percent in the first six months of the year from a year earlier.
Exports reached a record high of $102.2 billion in June amid solid global demand for memory chips.

By Yonhap

Published Aug 6, 2026 10:44 am KST

Finance Minister Koo Yun-cheol speaks during a meeting with economy-related ministers held at the Government Complex Seoul, Thursday. Yonhap

Korea's finance minister on Thursday expressed confidence in the country's economy, saying it is achieving "unprecedented" results on the back of solid growth and exports.

"The Korean economy is more solid than ever and is achieving unprecedented results," said Finance Minister Koo Yun-cheol during a meeting with economy-related ministers in Seoul.

"Both real-economy indicators and macroeconomic indicators, including growth, exports, inflation, and consumer and business sentiment indexes, continue to show a steady upward trend."

Last month, the government raised its 2025 growth forecast to 3 percent from its earlier projection of 2 percent, citing a semiconductor supercycle and easing uncertainties surrounding the Middle East.

Latest data showed that Asia's fourth-largest economy expanded 3.8 percent in the first six months of the year from a year ago.

Exports, the main driver of the economy, reached a record high of $102.2 billion in June amid solid global demand for memory chips.

Regarding recent stock market volatility, Koo said the government is working to stabilize the market and make the country a more attractive destination for investors.

"The government is responding swiftly to mitigate stock market volatility, and recently, the stock index has shown signs of stabilization," he said.

"We will continue our efforts to improve the structural health of the capital market and foster new industries to make it a more reliable investment destination."

To curb market volatility, the government announced a package of measures, including restrictions on transactions involving single-stock leveraged exchange-traded funds (ETFs).

Such ETFs linked to Samsung Electronics and SK hynix, introduced in May, have been widely viewed as a key factor behind the recent volatility in the domestic stock market.

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