The financial authorities have decided to assess the market situation and strengthen cooperation among relevant agencies in response to the recent increase in stock market volatility. Lee Ok-yeon, the Chairman of the Financial Services Commission, urged securities firms to refrain from indiscriminate credit provision and to prioritize customer protection and risk management.
On October 15, the Financial Services Commission held an emergency meeting on the stock market situation, chaired by Lee Ok-yeon, with the Financial Supervisory Service, the Korea Exchange, and market experts. The meeting focused on recent trends in the domestic stock market and the supply and demand from foreign and institutional investors, discussing future response strategies.
Participants diagnosed that the stock market volatility has increased due to expectations of rising global interest rates, uncertainties regarding investment and profit prospects in the AI semiconductor sector, and rising international oil prices. However, there was also an assessment that the market may have reacted excessively in terms of the speed of decline and supply and demand.
It was confirmed that key industries such as semiconductors, defense, and shipbuilding are performing well based on global competitiveness, and that the fundamentals of the economy, including foreign exchange reserves, current account balance, and the soundness of financial institutions, remain robust.
The financial authorities and relevant agencies agreed to closely monitor domestic and international market trends and supply and demand, and to prepare for the swift implementation of contingency plans if necessary. They also plan to respond strictly to the spread of false rumors, market manipulation, and illegal short selling that take advantage of market instability.
Chairman Lee stated, “Please remain vigilant even with small fluctuations and actively respond to ensure financial market stability and investor protection.” He added, “Investing based on excessive debt and credit is risky,” urging financial companies to refrain from indiscriminate credit provision and to focus on customer protection and risk management.
* This article has been translated by AI.
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