South Korea activates Sh9 trillion market stability fund over Mideast crisis
World
By
AFP
| Mar 05, 2026
South Korea's president ordered the activation of a Sh9 trillion market stabilisation fund Thursday, citing the need to smooth out volatility caused by war in the Middle East.
"The escalating crisis in the Middle East is significantly worsening the global economic and security environment," President Lee Jae Myung said.
"First, we must respond proactively to heightened volatility in financial markets, including equities and foreign exchange."
Lee said the Sh9 trillion programme would "pre-empt instability" in capital markets.
The fund includes money earmarked for bond and stock markets as well as real estate financing.
READ MORE
China woos Kenyan producers with '800-million opportunity' as zero-tariff deal takes effect
Co-op bank shares set for further gains on strong profit growth, lower rates
Kenya slashes dollar debt to record low as Chinese yuan gains ground
Government plans stricter laws to clean up tea sector
Tourism earnings hit record Sh500 billion as arrivals near 8m
Kakamega youth, women eye avocado export cash after skills training
Portable kitchen: Designer taps into space-saving trend
Kenya urged to pilot AI regulatory Sandbox in bid to lead Africa's digital future
MPs pledge site visist as KTDA gives progress on hydro power project
While it was not clear how it would be deployed, similar measures have in the past been used to directly inject cash into the benchmark Kospi index, which fell around 19 percent on Tuesday and Wednesday.
But it bounced back as much as 12 per cent Thursday, leading a global rebound from the week's turmoil.
Until Friday, the index had soared around 50 per cent this year -- having hit multiple records -- as the rush to snap up all things linked to artificial intelligence boosted tech firms, particularly chip makers Samsung and SK hynix.
South Korea is the fourth-largest importer of crude oil in the world, according to US government figures, and relies heavily on fuel shipped from the Middle East.