Financial Authorities Hold Emergency Financial Market Review Meeting... Emphasize Role of Institutional Investors

[Asia Economy Reporter Kangwook Cho] On the 6th, financial authorities emphasized the role of institutional investors in stabilizing the market as volatility in the financial market increased due to concerns over the novel coronavirus infection (COVID-19).

The Financial Services Commission and the Financial Supervisory Service announced this after holding a "COVID-19 Financial Situation Review Meeting" chaired by Kim Taehyun, Secretary General of the Financial Services Commission, in the afternoon.

The meeting was attended by representatives from the Korea Exchange, the International Financial Center, as well as securities firms such as Mirae Asset Daewoo and Meritz Securities.

Market experts present at the meeting explained that today's stock market volatility was due to concerns over the global spread of COVID-19 and the sharp drop in oil prices, and forecasted that the domestic financial market's volatility could be further influenced by the extent of COVID-19 spread and economic outlook.

On the day, the KOSPI fell 4.2% compared to the previous day, and major Asian indices including the Nikkei 225 (↓5.39%), Shanghai Composite (↓2.38%), and Hang Seng Index (↓3.57%) all declined.

In particular, attendees emphasized that the active role of institutional investors as a market stabilizer is more important than ever. Since institutional investors possess a long-term perspective, sufficient financial capacity, and the ability to endure losses, they should invest with a long-term and patient approach while observing market movements.

Market-related institutions recognized the financial market situation related to the COVID-19 crisis seriously and agreed to closely monitor the market situation. They also decided to take prompt measures to stabilize the market if necessary.