Democrats convene emergency party-government meeting as markets plunge
The Democratic Party of Korea held an 'Emergency Party-Government Roundtable on Financial Market Stability and Investor Protection' at the National Assembly on the 6th to discuss countermeasures. The KOSPI plunged more than 5% on the 5th and fell over 8% shortly after opening on the 6th, dropping below the 5,000 mark. From the government, Deputy Prime Minister and Economy Minister Lee Hyung-il, Financial Services Commission Chairman Lee Eok-won, and Financial Supervisory Service Governor Lee Chan-jin attended the roundtable.
Party leader Kim Min-seok urged officials to "focus on protecting individual investors and restoring confidence in the market." At the roundtable, Kim examined the causes of the stock plunge. "Experts analyze that the spread of concerns over a pullback in AI data center investment following the U.S. midterm elections was the main cause," he said. He added, "The Korean market's structural concentration in certain industries such as semiconductors has amplified the volatility of the Korean stock market, and the domestic market has also reacted somewhat excessively."
Deputy Prime Minister Lee Hyung-il diagnosed that "the fundamentals of our economy remain sound" and "the recent stock decline appears to be an excessive reaction to external factors." He explained that, to prevent excessive forced selling in the wake of the stock plunge from amplifying market volatility, the obligation for brokerages to maintain a 140% margin loan collateral ratio would be temporarily waived for three months starting November 9. He said additional measures would be prepared if volatility expands further.
Party leader Kim Min-seok requested a strict response to unfair trading, market manipulation, and the spread of false information that exploit heightened market volatility. He said the party would closely monitor the government's market stabilization measures to ensure they translate into tangible results that the public can feel.
Floor leader Han Byung-do said, "The party and government are watching domestic and international financial market conditions closely," adding, "We will deploy every available policy tool to stabilize the market and ease investor anxiety." Democratic Party spokesperson Lee Yong-woo told reporters after the meeting, "We exchanged views on various measures to stabilize the domestic stock and financial markets and protect investors," adding, "We agreed to keep a close watch and, if necessary, arrange party-government consultations or discussions on countermeasures."
