Seoul:The South Korean finance minister announced plans to introduce additional measures to stabilize the financial market as artificial intelligence-related panic continues to disrupt the stock exchange.
According to Yonhap News Agency, Finance Minister Lee Hyoung-il, following an emergency meeting with senior officials from the Financial Services Commission, the Financial Supervisory Service, and the Bank of Korea, emphasized that the country's economic fundamentals remain strong. He urged investors to avoid excessive anxiety and skepticism in response to the market turmoil.
The South Korean stock market has been experiencing instability due to concerns over a potential slowdown in demand for memory chips, exacerbated by tighter regulations on AI-related sectors. In a significant move, trading of KOSPI-listed shares was temporarily halted for 20 minutes after the benchmark index plummeted by over 8 percent due to tech sell-offs.
As of 1159 a.m., the KOSPI index had declined by 3.55 percent, equivalent to a 191.22-point drop, settling at 5,186.68. The index had earlier reached a low of 4,911.28. In response to the market volatility, financial authorities announced that collateral regulations on loans for purchasing stocks would be fully lifted for three months starting later in the month.