Financial regulator to take measures to ease volatility in stock markets

SEOUL, July 1 (Yonhap) -- Financial authorities said Friday they will take a series of measures from next week to ease volatility in stock markets, as the nation's benchmark stock index sank to a 20-month low due to fears of an economic recession.

From next Monday, brokerage firms will be exempted from an obligation to hold at least 140 percent of the value of each stock purchase, to provide credit to their customers, the Financial Services Commission (FSC) said in a statement.

The exemption will in effect from next Monday until Sept. 30, the FSC said.

Also, the FSC will ease a regulation for listed firms' purchase of their own stocks.

The FSC said it will also conduct an inspection into short-selling practices and the possibility of them causing market disturbance.

Financial authorities "will review and implement market volatility mitigation measures in accordance with contingency plans," the FSC said.

On Friday, the benchmark Korea Composite Stock Price Index (KOSPI) retreated 1.17 percent to close at 2,305.42, dropping for a third day to hit a 20-month low.

The reading marked a 2.59 percent fall from a week ago, and the lowest closing since 2,300.16 points on Nov. 2, 2020.

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