South Korea's Ministry of Economy and Finance and other financial authorities agreed to strengthen real time joint monitoring following increased market volatility and a steep domestic equity correction. The agencies will assess whether stress is spreading to bond, foreign exchange and short term funding markets, respond firmly to market misconduct and continue capital market reforms aimed at reducing volatility and improving growth prospects. Officials attributed the correction to expectations of higher global interest rates, uncertainty over investment and earnings in artificial intelligence and semiconductors, rising oil prices and geopolitical tensions in the Middle East. The KOSPI fell from 7,004 on Oct. 2 to 5,554 on Oct. 15, with volatility exceeding that in other markets partly because of differences in sector weightings. The authorities nevertheless assessed economic and market fundamentals as sound, citing the International Monetary Fund's upgraded 2026 growth forecast of 3.3%, a large current account surplus and projected KOSPI listed company operating profit of KRW 969 trillion in 2026.
South Korea's Ministry of Economy and Finance strengthens joint market monitoring after sharp equity correction
South Korea's Ministry of Economy and Finance and other financial authorities will intensify real time monitoring after the KOSPI fell from 7,004 on Oct. 2 to 5,554 on Oct. 15. They will track potential spillovers to bond, foreign exchange and short term funding markets while maintaining that economic and corporate fundamentals remain sound.