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Korea to inject 100 billion won to stabilize Kospi after martial law fallout

Published: 10 Dec. 2024, 10:50

JIN EUN-SOO
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Finance Minister Choi Sang-mok [NEWS1]

Korea plans to inject 100 billion won ($70 million) into the local stock market by next week to stabilize conditions following the brief martial law declared by the president last week.

An additional 300 billion won fund is planned afterward.

Korea's stock market has experienced severe volatility since last week. On Monday, the benchmark Kospi index dropped below the 2,400 level, closing at 2,360.58 — a decline of 2.8 percent. This marked a year-low since Nov. 2 last year.

Finance Minister and Deputy Prime Minister Choi Sang-mok struck a cautious tone during his remarks Tuesday morning.

"Volatility in financial and foreign exchange markets has expanded lately, but it seems excessive given the external stability of our economy," he said.

"The government and the Bank of Korea have sufficient capacity to respond. We plan to actively address excessive market volatility to a degree that can reverse market sentiment."

The government already injected 30 billion won last week through the Korea Value-up Index and plans to roll out an additional 70 billion won by the end of this week, according to Choi.

BY JIN EUN-SOO [[email protected]]