The government will buy 3.4 billion US dollars. Bonds to be Repurchased Amid Rising Volatility in South Korean Financial MarketsNews
Relevant authorities are taking countermeasures to stabilize the country’s financial markets which have lost ground in recent days.
Shin Ha-young has more.
Volatility in South Korean financial markets has increased.
South Korea’s benchmark KOSPI ended Wednesday’s session below 22 hundred points for the first time in two years and two months.
It closed at 2,169, down almost 2.5%.
The South Korean won continues to lose ground against the US dollar.
The exchange rate at one point crossed 1.4 cents 40 won per U.S. dollar during Wednesday’s trading.
In response, the government decided to inject 2 trillion Korean won, or nearly US$1.4 billion, to buy back government bonds to stabilize the market, starting Friday.
The decision was taken at a meeting of the Ministry of Economy and Finance on Wednesday.
The Bank of Korea also said it would make an emergency buyout worth 3 trillion won, or more than $2 billion, starting Thursday.
On the same day, the Financial Services Commission unveiled its plan to reactivate the stock market stabilization fund.
The fund, worth around $7 billion, was created in 2020 in response to a stock market crash that followed the COVID-19 outbreak, but was drawn down due to market recovery.
Meanwhile, during the meeting of the Ministry of Economy and Finance, First Vice Finance Minister Bang Ki-sun urged relevant ministries to be fully prepared to respond to the market and review measures to stabilize volatility.
Shin Ha-young, Arirang News.