As concerns mounted over a "Black Monday" following a sharp drop in U.S. stocks and a decline in overnight futures, the Korea Exchange (KRX) held an emergency market review meeting and moved to respond.
The Korea Exchange (KRX) said it convened an emergency market review meeting at 8 a.m. on the 8th, chaired by Chair Jeong Eun-bo. The meeting reviewed recent domestic and global financial market conditions, including the previous day's plunge in U.S. stocks and overnight futures, and discussed future market management measures.
Earlier, on the 5th (local time), the tech-heavy Nasdaq composite fell 4.18% to close at 25,709.43 in New York trading. On the same day, the Philadelphia Semiconductor Index (SOX) plunged 10.26%, marking the biggest drop since 2020.
The exchange decided to strengthen an organization-wide response posture to proactively address the recent expansion in stock market volatility. It plans to work closely with the financial authorities and closely monitor key market variables such as global stock market trends, the Middle East situation, and exchange rates.
In particular, if the market changes rapidly, it will also check related systems so stabilization measures such as sidecars can be implemented in a timely manner. The exchange's policy is to minimize market disruption through stable operation of IT systems.
It will also step up responses to unfair trading. The exchange will expand preventive activities against unfair trading such as price rigging and the spread of false information that exploit stock market uncertainty, and will strengthen inspections of illegal short selling.
Chair Jeong Eun-bo said, "All executives and employees of the exchange must remain vigilant so they can respond swiftly to rapidly changing market conditions," and urged, "Please make every effort to ensure stable market operations."