South Korean finance minister discusses market stabilization
South Korean Finance Minister Koo Yun-cheol held a meeting with financial officials in Seoul on September 4 to discuss measures to stabilize markets amid rising interest rates and renewed tensions in the Middle East. As The Korea Herald reports, participants reviewed the latest developments in global and domestic financial markets.
Pressure on interest rates
The meeting concluded that upward pressure on interest rates persists due to increased government bond issuance in various countries around the world and corporate bond sales by global companies in the artificial intelligence sector.
Officials also noted that rising oil prices due to renewed tensions in the Middle East could increase financial market volatility. The government said it would closely monitor the situation.
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Authorities also pledged to protect vulnerable borrowers from rate increases. According to the meeting participants' assessment, the current situation generally remains manageable, but could worsen in the event of a sharp rise in interest rates.
Postponement of KOSDAQ requirements
Separately, officials discussed reform of the technology-oriented KOSDAQ market. The government had previously planned to raise the minimum market capitalization required to maintain a listing from 20 billion won, or $15 million, to 30 billion won starting in January.
The introduction of the new threshold was postponed by six months, until July 2027, to give the market time to recover after recent volatility. Companies meeting specified financial requirements will also be allowed to move from KOSDAQ to the small-business-oriented Korea New Exchange without a liquidation trading period, in order to mitigate the consequences of delisting.
