(LEAD) More market stabilization measures in store to ease panic sell-offs: finance minister

SEOUL, Nov. 6 (Yonhap) -- South Korean Finance Minister Lee Hyoung-il announced on Friday that financial authorities are prepared to introduce additional measures to calm the turbulent stock market, as artificial intelligence (AI) concerns have sent investors into a frenzy.

Following an urgent meeting among senior officials from the Financial Services Commission, the Financial Supervisory Service, and the Bank of Korea, Lee expressed confidence in the nation's economic foundation. He urged investors to avoid excessive worry and skepticism. The authorities are keeping a close eye on any signs of heightened anxiety and one-sided market movements, ready to take more action if volatility escalates.

The country's stock market has been shaken by worries about a slowdown in demand for memory chips due to tighter regulations on AI-related sectors. Shortly after the opening bell, trading of KOSPI-listed shares was halted for 20 minutes as the benchmark index plummeted by over 8%, or 191.22 points, to 5,186.68. By 11:59 a.m., the index had fallen a further 3.55%, or 191.22 points, to a low of 4,911.28.

In response to the market turbulence, the financial authorities have announced that the collateral regulation on loans used to purchase stocks will be fully lifted for three months, starting later this month, to help reduce market volatility.