April 19, 2024

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South Korea’s financial regulator said on Aug. 6 it has drawn up contingency plans to stem volatility in financial markets as the United States designated China a currency manipulator in the latest escalation of their trade spat.

Financial Services Commission Vice Chairman Sohn Byung-doo told a meeting with relevant officials that the regulator is drawing up “every possible option” to minimize the impact of the deepening trade spat between Washington and Beijing. 

The options included softening rules on stock buyback, strengthening regulations on short-selling and cutting the price limit on daily stock transactions, Sohn said.

“The government will spare no efforts to minimize the impact of external factors on local markets and maximize the markets’ resilience,” Sohn said at the meeting.

The government is also considering bolstering the role of stock-related organizations and institutional investors to mitigate financial volatility, Sohn said.

By Ram Garikipati and newswires (ram@heraldcorp.com)