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Finance Minister Choi Sang-mok (2nd from left) speaks during an emergency meeting on the economy and financial markets in Seoul on Tuesday, in this file photo provided by the finance ministry. (Yonhap) |
South Korea's financial authorities said Tuesday that they are ready to take action against extremely volatile market jitters urging investors to remain calm and cool-headed given the country's sound economic fundamentals.
The country's benchmark Korea Composite Stock Price Index suffered the worst crash on Monday as investors staged a massive selling binge out of fears over a recession in the United States.
The index plummeted a record 234.64 points, or 8.77 percent, to close at 2,441.55, after dipping to as low as 2,273.97 at one point, following a 3.65 percent loss the previous session.
It is the lowest closing price since Nov. 14, when the index finished at 2,433.25.
On Tuesday, the country's stock market rebounded sharply by gaining 4.52 percent, or 110.40 points, to 2,551.95 as of 9:30 a.m.
"Financial authorities will remain vigilant against market uncertainties and will swiftly implement contingency plans via concerted cooperation among related agencies," Finance Minister Choi Sang-mok said in a meeting with Bank of Korea Gov. Rhee Chang-yong, Kim Byoung-hwan, the chief of the Financial Services Commission, and others.
They shared the view that Monday's market crash was excessive as multiple factors, such as a U.S. slowdown, the yen-carry trade and renewed geopolitical woes in the Middle East, came to the fore simultaneously.
They said South Korea's economy is maintaining a mild recovery, and the country is well-positioned to take measures against external shocks and market volatility.
"Market participants need to remain calm and make rational decisions while taking heed of excessive market jitters," they said in a statement. (Yonhap)
