Seoul:The South Korean government has committed to taking firm action against unfair practices in the capital market as recent volatility has affected the stock market.
According to Yonhap News Agency, officials from the Ministry of Finance and Economy, the Bank of Korea, the Financial Services Commission, and the Financial Supervisory Service convened a meeting in Seoul to evaluate current trends in both domestic and global financial markets. They also explored potential responses to these challenges.
The assessment revealed that stock markets are experiencing a correction due to expectations of rising global interest rates, uncertainties in the artificial intelligence semiconductor sector, and risk-averse behavior triggered by increasing international oil prices. The South Korean stock market, in particular, has demonstrated higher volatility compared to others, largely because of its significant focus on AI-related sectors.
Despite these challenges, officials noted that the fundamentals of the Korean economy and stock market remain strong. Economic growth is projected to reach around 3 percent this year, supported by a substantial current account surplus and a positive outlook for corporate earnings.
To mitigate market disruptions, the government and related agencies have decided to maintain heightened vigilance, enhance real-time joint monitoring, and enforce strict measures against any instances of market misconduct. The Korea Composite Stock Price Index recently declined for the seventh consecutive session, dropping 7.57 percent to a six-month low of 5,554.22, amid renewed concerns over excessive AI expenditures.