Seoul, Nov 6 (IANS) The country’s finance minister said on Friday that the financial authorities are ready to unveil more steps to ease the bourse turmoil as artificial intelligence (AI) panic rocks the market.
After an emergency meeting of senior officials of the Financial Services Commission, and the Financial Supervisory Service and the Bank of Korea, Finance Minister Lee Hyoung-il stressed South Korea’s economic fundamentals are solid and investors are asked not to remain excessively anxious and skeptical.
“The authorities are closely monitoring excessive anxiety and one-sided movement. We are ready to take additional actions should market volatility accelerate,” Lee said, reports Yonhap news agency.
The country’s stock market is roiled by woes that demand for memory chips will slow down in the face of tighter regulations on AI-related sectors.
Shortly after the opening bell, trading of the KOSPI-listed shares was suspended for 20 minutes, as the benchmark index plunged by more than 8 percent amid tech sell-offs.
The index dropped 3.55 percent, or 191.22 points, to 5,186.68 as of 11:59 a.m. after dipping as low as 4,911.28.
The financial authorities said collateral regulation on loans extended to buy stocks will be fully lifted for three months starting later this month to ease market volatility.
Meanwhile, South Korea’s benchmark Korea Composite Stock Price Index (KOSPI) sank below 5,000 points on Friday, hit by fears that a Democratic Party victory in the U.S. midterm elections could slow the pace of data centre construction for artificial intelligence (AI).
Taking a cue from a tech sell-off on Wall Street overnight, the KOSPI plummeted more than 8 percent, prompting trading on the market to be halted for 20 minutes.
It was the first time in 16 trading sessions that the KOSPI’s 20-minute trading halt was activated.
—IANS
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