[Special Report] Securities Stocks Rise Together Following Government Announcement of Financial Market Stabilization Measures

On the 23rd, Lee Bok-hyun, Governor of the Financial Supervisory Service, Lee Chang-yong, Governor of the Bank of Korea, Choo Kyung-ho, Deputy Prime Minister for Economy, Kim Ju-hyun, Chairman of the Financial Services Commission, and Choi Sang-mok, Senior Secretary for Economic Affairs, who attended the 'Emergency Macroeconomic and Financial Meeting' held at the Banking Hall in Jung-gu, Seoul, are explaining the results of the meeting after it concluded. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Myung-hwan Lee] On the morning of the 24th, securities stocks are collectively showing an upward trend in the market. This appears to be influenced by the government's announcement of a market stabilization plan involving more than 50 trillion won in funding the previous day.

As of 10:01 AM, Kiwoom Securities is trading at 75,700 won, up 8.14% (5,700 won) from the previous trading day, and Meritz Securities is trading at 3,740 won, up 7.16% (250 won) from the previous day. In addition, most securities stocks such as Samsung Securities (4.79%), Hanwha Investment & Securities (4.44%), Mirae Asset Securities (3.77%), and Eugene Investment & Securities (3.31%) are showing strength.

Securities stocks seem to be rising following the government's emergency meeting and liquidity measures announced the previous day. Major domestic securities stocks had recently shown weakness due to concerns over liquidity tightening in real estate project financing (PF) triggered by Legoland.

At the meeting the previous day, the government announced it would operate a liquidity supply program exceeding 50 trillion won. The government decided to resume purchases of corporate bonds and commercial papers (CP), including construction company guaranteed PF-asset-backed commercial papers (ABCP), starting from the 24th, prioritizing the use of 1.6 trillion won of available resources from the 20 trillion won scale bond fund.

The purchase limit for corporate bonds and commercial papers (CP) under the program operated by the Korea Development Bank, Industrial Bank of Korea, and Korea Credit Guarantee Fund will be raised from the existing 8 trillion won to 16 trillion won. For securities firms temporarily facing liquidity shortages due to difficulties in refinancing PF-ABCP, Korea Securities Finance will first use its own resources to provide liquidity support of about 3 trillion won.