From BigGo Finance · BigGo Finance · · 1m 30s
South Korea's Finance Minister Prepares Market Stabilization Measures
South Korea's Finance Minister says market stabilization steps ready if stock volatility widens, eyes stabilization fund.
In brief
South Korea's Finance Minister says market stabilization steps ready if stock volatility widens, eyes stabilization fund. South Korea's Finance Minister Lee Hyung-il prepares market stabilization measures if stock volatility widens, citing global interest rates, AI and semiconductor investments, and Middle East risks…
South Korea's Finance Minister
South Korean Deputy Prime Minister and Minister of Economy and Finance Lee Hyung-il said the government is preparing to deploy market stabilization measures if needed amid recent volatility.
Market Stabilization Measures
The government is ready to inject the stock market stabilization fund or temporarily halt short selling if stock volatility widens.
Volatility Drivers
Rising global interest rates, AI and semiconductor investment profitability concerns, and Middle East geopolitical risks drive recent market correction.
Economic Fundamentals
South Korea's economic fundamentals remain solid due to a large current account surplus and strong growth trends.
Won-Dollar Exchange Rate
The won-dollar exchange rate has fallen to around 1,330 won (approximately $1), a process of returning to economic fundamentals.
Korea-US Currency Swap
A Korea-US currency swap is necessary as a safety net for South Korea's foreign exchange market, but not a request due to lack of foreign currency liquidity.
Stabilization Fund Details
The stock market stabilization fund pools capital to buy shares during market declines, first introduced in 1990 and deployed in 2003 and 2008.
In short
South Korea's Finance Minister Lee Hyung-il prepares market stabilization measures if stock volatility widens, citing global interest rates, AI and semiconductor investments, and Middle East risks as drivers of recent market correction.
