The South Korea Financial Services Commission convened an emergency review of domestic stock market volatility and investor flows amid increased expectations of U.S. interest rate rises, uncertainty over investment and earnings in the AI semiconductor sector, and higher international oil prices. Officials and market experts assessed that share prices and fund flows had reacted excessively in some respects, while Korea’s major industries, foreign exchange reserves, current account and financial institutions remained sound. The meeting continues the commission’s use of coordinated market monitoring and contingency planning during periods of heightened external uncertainty. The commission and related agencies will intensify monitoring of domestic and international markets and take a zero tolerance approach to false rumors, market manipulation and illegal short selling. They will also prepare to activate contingency plans quickly if needed. Chairman Lee Eog-weon urged financial companies to avoid indiscriminate credit extension and strengthen customer protection and risk management, warning investors against excessive reliance on debt and credit.
South Korea Financial Services Commission reviews stock market volatility and strengthens contingency readiness
The South Korea Financial Services Commission reviewed increased stock market volatility linked to U.S. rate expectations, AI semiconductor uncertainty and higher oil prices. Authorities will strengthen market monitoring, prepare contingency measures and act firmly against market misconduct. Financial companies were urged to curb indiscriminate credit extension and reinforce risk management.