Taiwan, China tap market rescue funds. Why won't Korea?
China and Taiwan have tapped market rescue funds to reverse last week's sharp stock sell-off, triggered by the U.S. midterm elections. Korea, meanwhile, is holding back, resisting calls from retail investors to deploy what policymakers consider a weapon of last resort. KOSPI has shed 11.13 percent since the start of November as of Monday, leaving the benchmark down 42.87 percent from its June 22…
China and Taiwan have turned to market rescue funds to counter the steep stock sell-off that began last week, following the U.S. midterm elections. In contrast, South Korea remains hesitant to employ its own weapon of last resort, despite pleas from retail investors. The KOSPI index has plummeted 11.13% since the start of November, marking a 42.87% decline from its June 22 record high of 9,114.55.
This sharp drop has raised concerns about the potential peak of the artificial intelligence boom. The government has temporarily suspended a rule mandating brokerages to hold collateral equal to at least 140% of margin loans, in an effort to curb forced selling and further market decline. However, the measure has not quelled the demand from 14.42 million retail investors, who are urging the activation of a market stabilization fund due to a lack of significant buyers.
Share buyback initiatives by Samsung Electronics and SK hynix, which initially helped absorb foreign selling, concluded on October 21. While SK hynix has launched another round of repurchases, the new program remains in its early stages.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Taiwan, China tap market rescue funds. Why won't Korea? koreatimes.co.kr