(LEAD) More market stabilization measures in store to ease panic sell-offs: finance minister
Quick Look
- South Korean Finance Minister Lee Hyoung-il said financial authorities are ready to unveil additional measures to ease bourse turmoil as AI panic rocks the market.
- The KOSPI plunged more than 8 percent before trading was suspended for 20 minutes, and collateral regulations on stock loans will be fully lifted for three months starting later this month.
AI-generated summary
Why It Matters
South Korea's stock market is experiencing turmoil driven by concerns that demand for memory chips will slow down due to tighter regulations on AI-related sectors. The KOSPI benchmark index plunged more than 8 percent shortly after the opening bell, triggering a 20-minute trading suspension.
SEOUL, Nov. 6 (Yonhap) -- The country's finance minister said Friday that the financial authorities are ready to unveil more steps to ease the bourse turmoil as artificial intelligence (AI) panic rocks the market.
After an emergency meeting of senior officials of the Financial Services Commission, and the Financial Supervisory Service and the Bank of Korea, Finance Minister Lee Hyoung-il stressed South Korea's economic fundamentals are solid and investors are asked not to remain excessively anxious and skeptical.
"The authorities are closely monitoring excessive anxiety and one-sided movement. We are ready to take additional actions should market volatility accelerate," Lee said.
The country's stock market is roiled by woes that demand for memory chips will slow down in the face of tighter regulations on AI-related sectors.
Shortly after the opening bell, trading of the KOSPI-listed shares was suspended for 20 minutes, as the benchmark index plunged by more than 8 percent amid tech sell-offs.
The index dropped 3.55 percent, or 191.22 points, to 5,186.68 as of 11:59 a.m. after dipping as low as 4,911.28.
The financial authorities said collateral regulation on loans extended to buy stocks will be fully lifted for three months starting later this month to ease market volatility.
What to Watch
AI outlook โ possibilities, not facts
The collateral regulation lift on stock loans will help stabilize market volatility in the short term.
Likely ยท Within weeks
Open Questions
- What specific additional actions will the authorities take beyond lifting collateral regulations?
- When exactly will the collateral regulation lift begin?
- How long will the market volatility persist?
