In response to the stock market emergency, South Korea held a market condition inspection meeting on November 6. At the meeting, Vice Prime Minister of Economy and Minister of Planning and Finance Li Jiong-il and other participants agreed that the recent decline in stock prices is the result of a combination of factors such as policy uncertainty surrounding the AI industry and shrinking global investment sentiment, such as concerns about AI data center regulations, and that the domestic stock market is overreacting to these external factors. After the meeting, the Korea Financial Services Commission issued an announcement announcing that in order to prevent excessive forced liquidation of positions and amplification of market fluctuations due to a sharp drop in stock prices, credit financing securities companies will be exempted from maintaining a guarantee ratio of 140% for three months starting November 9. At the same time, it said that if volatility increases further, additional stabilization measures are already being prepared. The last time this policy tool appeared was on July 1, 2022. At that time, the South Korean stock market faced dual market concerns about aggressive interest rate hikes by the Federal Reserve and the global economic slowdown, and the KOSPI index fell in stages to 2305.42 points during trading. According to the announcement of the Korea Financial Services Commission, the meaning of exempting the obligation to maintain the guarantee ratio is to allow securities companies to “determine the guarantee maintenance ratio flexibly, taking into account borrowers and market conditions.”

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