South Korea Holds Emergency Meeting as 864 Trillion Won Leaves Its Stock Market

South Korea convened an emergency market meeting on the evening of July 29. This came as the KOSPI shed 864.5 trillion won in value across two trading sessions.

On Wednesday, the index closed at 5,663.24, down 5.98%, and triggered a market-wide circuit breaker for a second straight day.

South Korea's Financial Authorities Meet Amid KOSPI's Slide

Finance Minister Koo Yun-cheol is hosting the session, which started at 6 pm local time, Bloomberg reported. Bank of Korea Governor Shin Hyun-song joined him. FSC Chairman Lee Eog-weon and Financial Supervisory Service Governor Lee Chan-jin also took part, according to media reports.

Lawmakers had questioned senior officials repeatedly in parliament on July 29. They traced part of the selloff to the single-stock leveraged products launched in May.

Lawmakers argued the ETFs had magnified those price swings. They said speculative trading had concentrated in a small group of blue-chip stocks, which left Korean equities far more volatile than global peers.

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