Stock Market Plunge: Go Seung-beom Raises Monitoring Level to 'Caution'

Expressing Concern Over the Simultaneous Plunge of KOSPI and KOSDAQ

Financial Services Commission Chairman Ko Seung-beom is delivering opening remarks at the meeting to review debt risks of small business owners held on the 19th at the Korea Institute of Finance in Jung-gu, Seoul. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kim Jin-ho] Ko Seung-beom, Chairman of the Financial Services Commission, said on the 25th regarding the recently plummeting stock market, "We will raise the monitoring stage by one level to 'caution'."

Chairman Ko stated this during a meeting with reporters after the '2022 Financial Development Deliberation Council General Meeting' held at the Korea Federation of Banks in Jung-gu, Seoul, saying, "According to the FSC system, as of yesterday, we have entered the caution stage."

The KOSPI has fallen sharply for two consecutive days, dropping to the 2720 level. This is due to continued concerns over US tightening and added geopolitical risks from Ukraine, which have significantly dampened investor sentiment. The KOSDAQ also fell by nearly 3%.

The financial authorities are preparing a contingency plan that issues stages of 'caution - alert - severe' according to the stock market situation. He said, "According to the contingency plan, we have manuals on how to respond in the stock, bond, foreign exchange, and corporate credit sectors," adding, "We believe it is a stage where we need to monitor the situation more closely going forward."

When asked if the stock market plunge was predicted, he replied, "It is strongly related to the US Federal Reserve Board's monetary policy," and said, "We will actively monitor the market situation after reviewing the results of the Federal Open Market Committee (FOMC) meeting, which ends on the 26th (local time)."

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