'Market Remains Open Even if All Stocks Hit Lower Limit'... Financial Supervisory Service Executive Works Overnight After Early Morning Arrival

Executives Work Overnight Starting Early Morning
Crackdown on Capital Market Rumor Spreading
Foreign Exchange Market Monitoring
Securities Firm CEO Meetings to Resume Soon

"I have just received reports on the night futures and exchange rates. There will be selling movements in the market, but it will soon stabilize. This moment is truly critical."

"This is not wartime, so closing the stock market makes no sense. Even if all stocks hit the lower limit, the market must remain open. This is a fundamental rule of the market economy."

At around 11 p.m. on the 3rd, all executives of the Financial Supervisory Service (FSS) entered an emergency mode. When President Yoon Suk-yeol held an emergency press conference at the Yongsan Presidential Office at 10:25 p.m. on the 3rd and declared martial law, FSS executives were reportedly quite taken aback.

After the declaration of martial law, the market also shook. The KOSPI 200 night futures index, which had been on the rise, fell more than 3% immediately after the martial law declaration, and the won-dollar exchange rate sharply rose, surpassing 1,440 won. Each department of the FSS reported the night market situation to the executives in real time, closely monitoring the developments.

As news spread that martial law troops had entered the National Assembly, anxiety grew, and the FSS immediately switched to emergency mode. FSS Governor Lee Bok-hyun convened all executives and held an emergency meeting around 1:30 a.m. Currently, four out of ten deputy governors at the FSS are vacant. In vacant departments, department heads reported to ensure no operational gaps. After the meeting, some executives went home to change clothes and returned to work immediately, while others stayed at the office.

The FSS judged that the domestic stock market decline on the 4th was inevitable due to increased uncertainty following the martial law declaration. A senior FSS official said, "We expected the decline to be limited once martial law is lifted, and if not, we prepared scenario-based responses to strengthen monitoring of foreign investors and others amid rapid political changes. Judging by today’s situation, it is fortunate that the decline is limited."

Another FSS official said, "We have now entered a phase of political uncertainty, but the economic sector will respond steadily regardless of the political situation. We are swiftly operating inspection teams and monitoring the market situation."

Due to the martial law declaration, the FSS announced to reporters on the morning of the 4th that the scheduled 'FSS-Securities CEOs Meeting' would be postponed indefinitely. However, they plan to resume major schedules soon.

A senior FSS official explained, "There needs to be a consensus between the authorities and the industry to manage the current situation well. We plan to arrange a meeting with the Korea Financial Investment Association and the securities industry soon to share messages."