Seoul considers easing limit on stock price movement

The government is considering easing or lifting the current daily limit imposed on the movement of stock prices in a bid to help stimulate the country’s stock market, according to news reports on Wednesday.

According to the daily JoongAng Ilbo, Seoul is pushing to phase out the 15 percent daily limit in stock price fluctuations, and an announcement may come as early as this week in a meeting chaired by President Park Geun-hye.

The government “has always been considering” the option to phase out the daily limit on stock prices, a government official told Yonhap, adding that nothing has been decided on the matter.

The daily limit has been cited as a main factor holding back the country’s stock market, but critics are concerned about excessive market volatility without it.

(tellme@heraldcorp.com)