Finance minister voices confidence in economy, vows efforts to stabilize stock market

South Korea's Finance Minister Koo Yun-cheol expressed optimism about the nation's economic prospects on Thursday, highlighting the country's robust growth and export performance. Speaking at a meeting with economy-focused ministers in Seoul, Koo emphasized that the South Korean economy is stronger than ever, with real and macroeconomic indicators all pointing to a steady upward trajectory.

The government recently revised its growth forecast for 2025 upward to 3 percent, anticipating a semiconductor supercycle and reduced geopolitical uncertainties in the Middle East. In the first half of the year, South Korea's economy grew 3.8 percent, while exports hit a record high of US$102.2 billion in June, buoyed by strong global demand for memory chips.

Concerning recent fluctuations in the stock market, Koo assured that the government is actively working to stabilize the market and enhance its appeal to investors. The government has taken swift action to counter market volatility, with the stock index showing signs of steadying recently. To address this issue, the administration announced a series of measures, including restrictions on transactions involving single-stock leveraged ETFs, particularly those tied to Samsung Electronics and SK hynix.

These ETFs, introduced in May, have been blamed for recent market instability. Koo pledged ongoing efforts to strengthen the capital market's structural integrity and stimulate new industries to bolster investor confidence.