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South Korea takes steps to stabilise local stock markets

South Korea takes steps to stabilise local stock markets

Korea Exchange Bank (KEB) foreign currency dealers work in front of displays showing the current Korea Composite Stock Price Index (KOSPI) and the exchange rate between the South Korean won and the dollar (R) at the bank in Seoul December 22, 2011. REUTERS/Kim Hong-Ji/Files

SEOUL: South Korea's financial regulatory agency announced on Friday (Jul 1) a series of measures aimed to stabilise the local stock market, saying they would take effect next week for three months.

The Financial Services Commission said that the stock market's volatility continuously increased recently, and although it is inevitable for a while, there arose a need to calm market sentiment.

From next Monday, stock brokerage houses will be exempted from a requirement to hold 140 per cent or more worth of stocks for credit provided to their customers, the Commission said in a statement.

From next Thursday, listed companies will be allowed to buy more of their own stocks from the market per day than they can now, it added.

Meanwhile, authorities will also conduct special inspections on short-selling and for any possibility of market-disturbing behaviours, according to the statement.

Going forward, the financial regulator said it will hold weekly meetings to watch the market situation and take necessary measures according to contingency plans.

South Korea's benchmark KOSPI has fallen 23 per cent so far this year.

Source: Reuters/gs

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