South Korea's Ministry of Economy and Finance announced that securities firms will be exempt from the 140% collateral maintenance requirement for margin loans for three months, starting Nov. 9, 2026. The measure aims to prevent forced selling from amplifying stock market volatility following the U.S. midterm elections. The decision followed a joint market review with financial regulators and the Bank of Korea. The Kospi stood at 5,075 at 11 a.m. on Nov. 6, down from 5,384 on Nov. 5. Meeting participants linked the selloff to policy uncertainty surrounding artificial intelligence, including concerns over data center regulation, and weaker global investor sentiment. They assessed that domestic equities were reacting excessively to external factors. Authorities will intensify monitoring of domestic and overseas stock markets and capital flows, alongside developments in the global semiconductor industry and major economies' policies. Additional market stabilization measures will be prepared if volatility increases further.
South Korea's Ministry of Economy and Finance announces waiver of brokers' 140% margin collateral requirement for three months
South Korea's Ministry of Economy and Finance announced a waiver lasting three months of securities firms' 140% collateral maintenance requirement for margin loans, beginning Nov. 9, 2026. The relief aims to limit forced selling amid stock market volatility following the U.S. midterm elections. Authorities will strengthen market monitoring and prepare further stabilization measures if volatility worsens.