SEOUL, Oct. 29 (Korea Bizwire) — Major South Korean financial firms vowed Monday to establish an emergency monitoring system to better respond to market instability, their association said.
The pledge came after chiefs of 12 local securities firms and nine asset management companies held an emergency meeting earlier in the day to assess the current market situation and discuss ways forward to stabilize the market.
In the face of a mixture of unfavorable factors both at home and abroad, the benchmark KOSPI has tumbled more than 13 percent this month until Friday and the second-tier KOSDAQ has nosedived more than 19 percent.
Expressing “deep concerns” over such a downturn, Kwon Yong-won, chief of the Korea Financial Investment Association (KOFIA), who chaired the meeting, said the recent market flow was “excessive compared to past experiences and overall economic fundamentals.”
“In order to stabilize the market and to protect investors, it is an urgent task to maintain close cooperation between the business circle and the government,” he said, vowing to set up and run an emergency response team designed to monitor market moves and investors on a real-time basis.
The chiefs of the securities firms and the asset management companies also shared his view and vowed to do their part, according to the KOFIA.
On Friday, the KOSPI skidded 1.53 percent to a fresh yearly low of 1,996.05, the first time since December 7, 2016 that the benchmark index dipped below the psychologically significant 2,000 mark.