Financial Services Commission Vice Chairman: "If Stock Market Volatility Further Increases, Market Stabilization Measures Will Be Taken"

Kim So-young, Vice Chairman of the Financial Services Commission, is attending the emergency macroeconomic financial meeting held at the Bankers' Hall in Jung-gu, Seoul on the 16th. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Yoo Hyun-seok] Kim So-young, Vice Chairman of the Financial Services Commission, stated on the 24th that if excessive anxiety further increases stock market volatility, necessary market stabilization measures will be implemented according to the contingency plan based on the situation.

Vice Chairman Kim chaired the stock market review meeting that day and said, "The government is also closely monitoring the recent increase in stock market volatility with vigilance."

In her opening remarks, Vice Chairman Kim diagnosed, "We are entering a major transition period where the abundant liquidity that had been flowing into the market is decreasing due to the strong monetary tightening by domestic and foreign monetary authorities."

She continued, "Given the macroeconomic conditions at home and abroad, such as high inflation centered on raw materials and the increasing possibility of a global economic recession, an expansion of stock market volatility is inevitable for the time being."

However, she added, "It is true that recently, investment sentiment in our stock market has been excessively depressed, and the voices of market experts saying this is further increasing market volatility are growing louder."

Vice Chairman Kim emphasized, "The fact that our stock market is greatly affected by monetary tightening, high inflation, and economic recession paradoxically means that if the economy recovers, our stock market can quickly rebound again. It is necessary to be cautious of the spread of excessive anxiety and the resulting rapid 'herding trading' and to view the market more rationally."

The meeting was held to share opinions on the current stock market situation among related organizations including the Financial Services Commission, Financial Supervisory Service, Korea Exchange, Korea Financial Investment Association, and Korea Securities Finance, and to check the preparation status of market stabilization measures for various scenarios.

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