SEOUL, Oct. 16 (Yonhap) -- The South Korean government on Friday pledged to take strict action against unfair practices in the capital market amid recent stock market volatility.
Officials from the Ministry of Finance and Economy, the Bank of Korea, the Financial Services Commission and the Financial Supervisory Service reviewed recent trends in domestic and global financial markets and discussed possible responses at a market review meeting in Seoul, according to the finance ministry.
They assessed that domestic and global stock markets are undergoing a correction phase amid expectations of rising global interest rates, uncertainty over investment and earnings prospects in the artificial intelligence (AI) semiconductor sector, and risk-averse sentiment stemming from rising international oil prices.
The South Korean stock market has exhibited relatively higher volatility than other markets, partly due to its heavy weighting in AI-related sectors, they added.
The officials said the fundamentals of the Korean economy and stock market remain solid, with growth projected to reach the 3 percent range this year, a substantial current account surplus and positive corporate earnings outlooks.
The government and relevant agencies decided to maintain a high level of vigilance, strengthen real-time joint monitoring and respond strictly to any market disruptions, according to the finance ministry.
The Korea Composite Stock Price Index fell for a seventh consecutive session Thursday, plunging 7.57 percent to a six-month low of 5,554.22 amid renewed concerns over excessive AI spending.
Financial data is displayed on a screen inside the dealing room of Hana Bank in Seoul after the stock market close on Oct. 15, 2026. (Yonhap)
brk@yna.co.kr
(END)