The Financial Supervisory Service (FSS) convened an emergency meeting on market volatility concerning the ongoing geopolitical tensions in the Middle East, specifically following the U.S. and Israeli airstrikes on Iran. Market experts attending the meeting included four foreign investment bank analysts, three domestic securities research center heads, and representatives from the Capital Market Research Institute. They assessed that while the geopolitical risks have contributed to heightened volatility, factors such as improving corporate performance and the government's shareholder-friendly policies will likely provide a solid support base for the domestic stock market.

The FSS noted that the primary causes of the recent volatility in the South Korean stock market include geopolitical risks stemming from the Middle East situation and profit realization demands. Despite a significant drop in the KOSPI index, which experienced a 12.06% decline to close at 5093.54 after previously exceeding the 6300 mark for the first time, the outlook remains cautiously optimistic. Experts suggest that if the market experiences excessive downward pressure, meaningful support levels could emerge due to the improved fundamental conditions and liquidity in the market compared to previous years.

Concerned about the large drop in the stock market, FSS Deputy Commissioner Hwang Seon-o stated that they are closely monitoring the situation and are prepared to implement emergency measures if necessary. The Financial Services Commission also held a meeting to address liquidity difficulties faced by exporting firms and explore financial support measures amidst the turbulent market conditions. Overall, experts believe that while fluctuations may increase in the short term, the domestic stock market's resilience and support mechanisms should buffer it from significant long-term impacts related to the Middle Eastern geopolitical climate.