Foreigners Break Down the KOSPI's 2500 Line...The exchange rate is around 1410 won.

KRW → Demand to Exchange Dollar Surges Amid 'Ceremony Shock'

KOSPI Collapses Around 2,500 Due to Foreigners' Exodus...KOSDAQ 670 Line

[Anchor]
The shock of the declaration and lifting of the emergency martial law overnight shook our financial markets all day.

The KOSPI 2,500-point level collapsed due to the outflow of foreign funds, and the exchange rate, which had exceeded 1,440 won, has calmed down somewhat, but it is still unstable, hovering around 1,410 won.

Reporter Ryu Hwan-hong reports.

[Reporter]
Foreign exchange dealers were busy as the won-dollar exchange rate, which exceeded 1,440 won overnight, fluctuated around 1,410 won even in the morning.

The exchange rate jumped together as the demand to buy dollars by changing the won surged due to the emergency shock wave.

In our stock market, the KOSPI fell below the 2,500-point mark as foreigners sold a net more than 400 billion won, and the KOSDAQ index also fell to the 670-point mark.

Although martial law has been lifted, it is likely that political instability will continue afterwards, so the view of the Korean financial market is unstable.

[Seo Jeong-hoon / Senior Specialist at Hana Bank: Foreigners are more likely to leave their funds in the mid-term, and the dollar exchange rate in the foreign exchange market is likely to fall in value and the KOSPI will continue to fall a little further.]

Financial authorities diagnosed that the fluctuations in our financial market are not at a level of concern.

However, they decided to supply unlimited liquidity out of fear of foreign funds, and operated a stock market stabilization fund worth 10 trillion won and a bond market stabilization fund worth 40 trillion won.

The Bank of Korea has also decided to purchase financial institutions' RP, or repurchase bonds, in sufficient size for short-term liquidity supply.

[Choi Yong-hoon / Director of Financial Markets, Bank of Korea: The size itself will be decided to a level sufficient to quell market instability given the liquidity and monetary size of the entire market.]

Some worry that the exodus of foreign funds will continue until the second quarter of next year due to increased political uncertainty despite such efforts by financial authorities.

I'm YTN's Ryu Hwan Hong.