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Finance Ministry to inject $207M to stabilize stock market

Published: 23 Dec. 2024, 17:19 Updated: 23 Dec. 2024, 18:06

Finance Minister Choi Sang-mok, left, chairs an emergency meeting in Seoul on Dec. 23.

The government is set to swiftly deploy additional market stabilization measures, including the injection of the second phase of value-up funds worth 300 billion won ($207 million) into the country's stock market, Finance Minister Choi Sang-mok said Monday.

Choi made the remarks during an emergency meeting with top economic and financial officials to address the heightened volatility in South Korea's financial and foreign exchange markets, which has been exacerbated by domestic political turmoil and the U.S. Federal Reserve's recent indication of a slower pace of interest rate cuts next year.

"We plan to swiftly execute the second phase of value-up funds, worth 300 billion won, as the agreements for fund formation were finalized last week," Choi said.

Value-up funds totaling 130 billion won have already been injected into the stock market to support liquidity and market stability, as the local bourse market has faced downward pressure on heavy foreign selling.

Highlighting significant domestic and international uncertainties, Choi called for continuous vigilance, urging 24-hour monitoring of financial and foreign exchange markets.

Choi, who doubles as deputy prime minister for economic affairs, also reiterated the government's commitment to swiftly implement new policy measures announced last week. The measures are aimed at easing regulations on foreign currency inflows amid the weak Korean won which has dipped to a 15-year low.

Yonhap