South Korea to Ease Margin-Loan Collateral Rules to Curb Market Volatility
By Kwanwoo Jun
South Korea will temporarily ease collateral rules for brokerage firms as authorities move to help curb market volatility.
Finance Minister Lee Hyoung-il said Friday that the measure would help prevent excessive forced selling and further destabilizing the equities market, according to a statement from his office. He was speaking at a meeting with financial regulators to discuss the recent market rout led by a sharp selloff in artificial-intelligence stocks.
Brokerage firms will receive a three-month waiver from the requirement to maintain a 140% collateral ratio for margin loans, effective Nov. 9, the minister said.
Lee said financial authorities would take additional measures to stabilize the market if volatility increases.
He added that the country's economic fundamentals remain strong, and urged investors to guard against excessive pessimism.
Earlier Friday, the main stock benchmark Kospi plunged more than 8%, triggering a brief trading halt aimed at curbing volatility. Chip makers tumbled on growing worries over a potential slowdown in the AI build-out following the Democratic sweep in the U.S. midterm elections.
The Kospi was last down 5.9% at 5067.37 after paring some losses.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
November 05, 2026 23:44 ET (04:44 GMT)
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