Ruling party admits 'deep responsibility' for South Korea's stock market plunge

South Korea's ruling party has acknowledged its "deep responsibility" for a significant downturn in the domestic stock market, which experienced circuit breakers on both the KOSPI and KOSDAQ indices. The party stated it recognizes the gravity of the situation and is committed to stabilizing the capital market and safeguarding investors.

“

As the ruling party, we are gravely recognizing the situation and feel a deep sense of responsibility.

In a written briefing, party spokesperson Park Ji-hye highlighted the recent volatility, noting that both the KOSPI and KOSDAQ markets saw trading temporarily halted. She emphasized that the party and government will collaborate closely to ensure capital market stability and investor protection. Park also referenced comments from Financial Services Commission Chairman Lee Bok-hyun, who expressed a strong sense of responsibility and pledged to implement supplementary measures for market stability, including decisive actions if necessary.

“

We will do our utmost to stabilize the capital market and protect investors through organic cooperation between the party and the government.

The ruling party plans to activate a special committee focused on the K-capital market. This committee will explore all possible measures to mitigate volatility in single-stock leverage and bolster investor protection. The goal is to minimize uncertainty in the capital markets and guide a soft landing for the economy. The party underscored that trust in the capital market is fundamental to the nation's economy, vowing to proactively manage market instability and protect financial consumers.

“

We feel a heavy sense of responsibility and will swiftly pursue supplementary measures for market stabilization, and take bold additional measures if necessary.