The Korean government was forced to step in to rescue the market - what a familiar scene and taste: South Korea's Ministry of Economy and Finance held an emergency market meeting on Wednesday evening, and after the meeting, the government announced a series of measures through a statement.

English summary

1. "Attendees agreed that funds' concentrated trading of leveraged products on a single stock exacerbated market volatility, and all departments promised to respond swiftly and decisively." Korean regulators plan to restrict retail participation in leveraged ETF trading, including setting maximum proportions of such products in investors' overall portfolios and raising transaction costs. 2. "Regulators will refer to overseas experience such as Hong Kong's flexible leverage regulatory system to promote the establishment of corresponding legal grounds, enabling regulators to take market stabilization measures in emergencies." Meanwhile, the Korean government will "maintain the highest alert level and monitor the market 24/7." 3. Driven by the AI boom and optimistic expectations for chip demand, the Korean stock market was one of the best-performing markets globally earlier this year. However, subsequent sharp fluctuations in Samsung Electronics and SK Hynix triggered a broad market sell-off. The KOSPI index has fallen about 40% from its June high. ...