Svmuu News: South Korea’s Ministry of Economy and Finance stated that Finance Minister Koo Yun-cheol has convened an emergency meeting with the governor of the Bank of Korea and the heads of financial regulatory agencies to address the recent sharp volatility in the South Korean stock market. The South Korean government said it will closely monitor various risk factors that could exacerbate market uncertainty and prevent market volatility from escalating further. Recently, the South Korean stock market has experienced increased volatility due to factors such as profit-taking by foreign and institutional investors, an anticipated correction in the AI sector, and portfolio rebalancing. The KOSPI index triggered its sixth circuit breaker of the year at one point this week.
In a statement, the South Korean government said, “Excessive concentration in the semiconductor industry has become a key factor amplifying financial market volatility, and the ripple effects of fluctuations in the chip sector on the overall market are continuously intensifying.” (Jin Shi)