Business · Markets · 3 hrs ago
South Korea to Act Against Excessive Stock Market Volatility
South Korea plans to curb excessive stock market swings, Vice Prime Minister and Finance Minister Lee Hyoung-il said at a government meeting in Seoul.
He spoke after US stocks fell sharply amid concerns that regulation of the AI industry could tighten.
Lee said the US midterm elections could mark an important turning point for the global economy, and that market effects could spread worldwide.
South Korean officials will prepare measures in advance to prevent the country’s market from reacting more than its economic fundamentals warrant.
The government also plans to monitor US trade measures and policy changes that could affect Korean companies.
It will carry out the existing US-South Korea trade agreement and strengthen communication with US federal, congressional and state officials.
Lee said these efforts are intended to support stable exports and investment and expand opportunities in strategic industries such as shipbuilding and energy.
South Korea will take timely steps to curb excessive volatility in its stock market, Finance and Economy Minister Lee Hyoung-il said.
Lee said officials would act pre-emptively to prevent the market from reacting excessively compared with the country’s economic fundamentals.
He cited concerns that stricter regulation of the artificial intelligence industry could affect global markets after U.S. stocks fell sharply.
Lee said South Korea would monitor external uncertainties and assess the effects of U.S. trade measures and policy changes on Korean companies.
He also said the government would work to implement the existing South Korea-U.S. trade agreement and strengthen communication with U.S. officials.
- Who
- South Korean Finance and Economy Minister Lee Hyoung-il and relevant government agencies.
- What
- The government will prepare and implement measures to curb excessive stock market volatility.
- When
- Lee announced the plan on November 6, 2026.
- Where
- At the government complex in Seoul.
- Why
- Concerns about global market effects from U.S. policy changes and stricter regulation of the AI industry.
This story does not have two clearly opposing sides.
U.S. midterm elections were held.
U.S. stocks fell sharply amid concerns about stronger regulation of the AI industry.
Lee Hyoung-il said the government would prepare measures to curb excessive stock market volatility.
- Minister
- Lee Hyoung-il
- Announcement date
- November 6, 2026
- Market concern
- Possible global spillover from a sharp fall in U.S. stocks
- Policy response
- Prepare measures proactively and implement them in a timely manner
- Trade agreement
- South Korea-U.S. agreement to be implemented steadily
1 source
What people are saying
We will proactively prepare necessary measures and implement them in a timely manner so that our stock market does not react excessively compared with economic fundamentals.
Concerns about strengthened regulation of the AI industry led to a sharp fall in the U.S. stock market yesterday, and the possibility of spillover to global markets cannot be ruled out.