KOSPI was also shaken by the fall in the US stock market … “A turning point in changes in internal and external economic conditions”

Kim Byeong-hwan, the new Chairman of the Financial Services Commission, is holding a ‘New Startup Fund Meeting’ at the Seoul Regional Headquarters of Korea Asset Management Corporation (CAMCO) on the 1st.

The government announced that it will strengthen investigation because stock markets in major countries, including the United States, have fallen recently and domestic stock markets have also taken a direct hit. Financial authorities also said they will increase the resilience of the domestic stock market through value enhancement programs and improvements to the short selling system.

The Ministry of Strategy and Finance held a conference with related organizations on the morning of the 5th to review recent domestic and international financial market trends and discuss future response directions. This is due to a recent drop in the three major indexes in the New York stock market due to concerns about the US economic recession. On the 2nd (local time), the S&P 500 index slipped -1.84%, while the NASDAQ and Dow Jones industrial average also fell 2.43% and 1.51%, respectively. The economic downturn in the United States also had a direct impact on the KOSPI. As of 9:11 am on the 5th, KOSPI registered 2573.56, down 102.63 points (3.83%) from the previous trading day, breaking the intraday level of 2580.

The Ministry of Strategy and Finance and the Bank of Korea announced that they will respond to the volatility of the global financial market through a 24-hour monitoring system among related organizations.

Financial market risk factors were also mentioned at the risk analysis meeting held by the Financial Services Commission on this day.

Chairman Kim Byeong-hwan of the Financial Services Commission said, “Because we are at the stage of inclusion where domestic and foreign economic conditions, such as the recent monetary policies of major countries, the US economic outlook, and the domestic real estate market . showing significant changes from the trends of the past few years, a stronger monitoring and response to market risks is required. ” he said.

“The government aims to improve the structure of our stock market in the medium and long term to strengthen its strength to withstand adverse external events and create an investment environment that trusts investors,” he said to expand the investment base in the domestic stock market through tax subsidies, etc.”

At the same time, at the risk review meeting on this day, debt risks for household debt, financing of real estate projects (PF), and small business owners were also discussed. At the end of last year, Korea’s private debt (household + corporate) was 4,959 trillion won, or 206.5% of GDP. This figure is much higher than the average of 150% for the 44 countries surveyed by the Bank for International Settlements (BIS). Private sector experts present said it was unlikely that the debt crisis would turn into an immediate crisis, but advised that the situation had to be managed with a high level of vigilance.

Chairman Kim announced that he will regularly follow the continuous debt response policy. First, we plan to control the total number of household debts through the second phase of the DSR pressure, which is expected to be implemented in September, and also the management of the debts of PF businesses through an assessment method better business feasibility. For secondary financial institutions, it was decided to increase loss-absorbing capacity through provisioning and capital expansion. We plan to continue supporting small business owners through the New Start Fund.

In addition to promoting a valuation policy so that companies are properly evaluated in the capital market, we also plan to promote financial structural reform to prevent excessive investment in real estate.

Chairman Kim said, “The task of dealing with debt does not mean reducing the total level of debt, but stabilizing debt to an appropriate level related to the real economy,” and said e, “The government and the financial sector are working together to “Through this cooperation, we will change the burden of debt and support recovery, while expanding support for low-income finance, ” he said.