Democratic Party holds emergency meeting on market plunge, calls for stronger retail investor protection

The Democratic Party of Korea convened an emergency meeting with financial regulators Friday to address the sharp decline in domestic stock markets, calling for stronger retail investor protection and market stabilization measures.

The party held the "Emergency Meeting on Financial Market Stability and Investor Protection" that afternoon at the National Assembly, with Deputy Prime Minister and Minister of Economy and Finance Lee Hyeong-il, Financial Services Commission Chairman Lee Eok-won and Financial Supervisory Service Governor Lee Chan-jin in attendance.

Democratic Party leader Kim Min-seok said the sharp drop in share prices was a matter directly affecting the safety of people's assets and that the party took public concern seriously. "We must prepare effective measures that will reassure the public and actively review and ready stabilization steps," Kim said.

Kim urged financial authorities to focus particularly on protecting retail investors and restoring market confidence. "Please respond strictly to unfair trading, market manipulation and the spread of false information that exploit expanded market volatility," Kim said. The party also pledged to push ahead swiftly with capital market reform legislation.

Floor leader Han Byung-do said the party viewed the state of domestic and international financial markets with grave concern and would mobilize all available policy tools to stabilize markets and ease investor anxiety. Han added that the party planned to pursue legislation and policy measures aimed at reducing volatility, improving the structural health of capital markets and strengthening investor protection.

Deputy Prime Minister Lee said the government would closely monitor excessive anxiety and supply-demand imbalances in the market and prepare additional steps if volatility worsens. Lee added that the government would continue its policy efforts to improve the underlying health of capital markets, including measures to enhance corporate value and restore confidence.

Earlier Friday, the government held a joint emergency market review meeting with relevant agencies and decided to temporarily exempt securities firms from the obligation to maintain margin financing collateral ratios for three months starting Monday. The measure is intended to prevent forced liquidations triggered by falling share prices from amplifying market volatility further.

The Democratic Party and the government plan to monitor financial market conditions over the weekend and, if necessary, hold additional consultations to discuss further response measures.