South Korea's Ministry of Economy and Finance held an interagency meeting to assess financial market volatility following the U.S. midterm elections and coordinate responses. The ministry, Bank of Korea, Financial Services Commission and Financial Supervisory Service agreed to maintain joint monitoring and respond rapidly if volatility increases. Global market swings narrowed as election results became clearer, but sector performance diverged. U.S. and European stock markets rose, while semiconductor shares fell amid concerns about tighter U.S. regulation of artificial intelligence. South Korean shares rebounded slightly on Nov. 4 but declined again on the morning of Nov. 5 as U.S. semiconductor stocks weakened. Domestic government bond yields fell amid reduced issuance and sharply lower international oil prices. The meeting also examined how changes in the composition of Congress could affect U.S. fiscal, trade and industrial policies. The implications for South Korea's financial markets and real economy will depend on whether policy changes materialize, their substance and the pace of implementation. Authorities will monitor U.S. artificial intelligence policies and regulation, tariff policy and developments in the Middle East war.
South Korea's Ministry of Economy and Finance reviews market risks after US midterm elections
South Korea's Ministry of Economy and Finance and other financial authorities reviewed market volatility following the U.S. midterm elections, agreeing to maintain joint monitoring and respond rapidly if volatility increases. Global market swings eased as results became clearer, but South Korean equities remained volatile amid weakness in U.S. semiconductor stocks. Authorities will track potential U.S. policy changes, particularly on artificial intelligence and tariffs, alongside developments in the Middle East war.