File pic: A currency trader works near the screens showing the Korea Composite Stock Price Index (KOSPI) (AP Photo/Ahn Young-joon)
SEOUL: South Korean financial authorities say the recent stock market plunge was excessive, given economic fundamentals, vowing to enhance market monitoring and swiftly implement a policy fund to strengthen valuation of local companies.
The message was released during an inter-agency meeting among chiefs of the Financial Services Commission (FSC), Financial Supervisory Service (FSS) and the Korea Exchange (KRX), as well as market experts and relevant institutions, in Seoul, in response to steep losses incurred in the local stock market.
The Korea Composite Stock Price Index plunged to nearly a yearly low last week amid concerns about broader implications of a second US administration under former President Donald Trump on the South Korean economy and businesses.
“Uncertainties remain high at home and abroad. We will be on extra alert and closely monitor the market situations,” FSC chairman Kim Byoung-hwan said.
“It is necessary to swiftly implement corporate value-up funds.
“The government is ready to take a range of market stabilisation measures, when necessary,” he added.
The KRX and other institutions are working to create a policy fund worth 200 billion won together with the private sector, which is meant to support corporate efforts to boost their market value. — The Korea Herald/ANN
