Financial Authorities Hold Emergency Meeting Amid KOSPI Plunge; Lee Eog-hyun Urges Thorough Risk Management

As the KOSPI plunged below the 5,500 mark during trading, financial authorities held an emergency inspection meeting to call for risk management and investor protection.

The Financial Services Commission (FSC) held the "Emergency Stock Market Inspection Meeting" this afternoon (the 15th) at the Government Complex Seoul, chaired by FSC Chairman Lee Eog-hyun, alongside related organizations such as the Financial Supervisory Service (FSS) and the Korea Exchange (KRX), as well as market experts, to examine domestic stock market trends and the supply and demand conditions of foreign and institutional investors.

Attendees diagnosed that stock market volatility has expanded due to internal and external macroeconomic conditions, including recent prospects of rising global interest rates, uncertainties surrounding investment and profitability in the AI semiconductor sector, and rising international oil prices.

However, they evaluated that the market has reacted excessively in terms of the speed of stock price declines and supply-demand dynamics.

At the same time, they confirmed that key industries such as semiconductors, defense, and shipbuilding are posting solid earnings, while economic fundamentals—including foreign exchange reserves, the current account, and the soundness of financial institutions—remain at a robust level.

Attendees emphasized that while maintaining vigilance over the expanding market volatility, they must guard against the spread of excessive anxiety and sudden herd behavior.

They also agreed that investors need to make rational investment decisions by considering the intrinsic value of companies and their mid- to long-term growth potential.

Financial authorities and related organizations plan to closely monitor domestic and international market trends and supply-demand conditions, while strictly responding to market-disturbing activities such as the spread of false rumors, market manipulation, and illegal short selling under a zero-tolerance principle.

They also plan to continue advance preparations so that a contingency plan can be swiftly implemented if necessary.

Chairman Lee instructed, "Maintain vigilance against even minor volatility and actively respond to ensure financial market stability and investor protection."

He added, "Credit-dependent investments are risky, and risk management is all the more crucial at times like this," emphasizing, "Financial companies must refrain from reckless provision of credit and make every effort to protect customers and manage risks."

(Photo provided by the Financial Services Commission, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.