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2026-11-06 10:56:26
[South Korea Temporarily Exempts Brokerages from Collateral Requirements for Margin Loans for Three Months to Prevent Forced Selling from Exacerbating Stock Market Volatility] (1) The South Korean government issued a joint statement saying that it will temporarily exempt securities companies from the requirement that they hold collateral worth at least 140% of their margin loans in order to prevent forced selling from exacerbating stock market volatility. (2) The exemption period will last for three months starting November 9. (3) The authorities unanimously believe that the South Korean stock market has overreacted to external factors, including uncertainty about artificial intelligence policies and weak global investment sentiment. (4) The authorities will monitor domestic and international stock markets and capital flows in real time with the highest level of vigilance and take proactive measures to prevent further market turmoil; if market volatility intensifies further, the government is prepared to take additional market stabilization measures. (5) The South Korean Finance Minister said that given the sound fundamentals of the South Korean economy, we should be wary of excessive pessimism caused by market anxiety.
