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Top regulator vows firm action to stabilize market
제목 없음 South Korea is ready to take firm and immediate measures to counter the ongoing financial turmoil, the head of the country's financial watchdog said Thursday.

   "Depending on market situations, we plan to take necessary steps immediately," Kim Seok-dong, chairman of the Financial Services Commission (FSC), said in a radio program.

   "The local economy now has the capacity to weather a global economic slump and financial market instability. We will strive to timely provide market stability measures, if necessary," Kim said.

   The remarks come after the local stock market tumbled around 17 percent over the last seven sessions due to mounting worries over the U.S. economy and the eurozone's debt crisis.

   As part of its efforts to quell market panic, the FSC on Tuesday imposed a ban on short selling of all local stocks listed on the main and the secondary tech-heavy KOSDAQ markets for three months. Short selling is the sale of shares by borrowing them in anticipation of price falls.

   At the height of the 2008 global financial crisis, South Korea imposed a temporary ban on short selling in an effort to prevent the trading practice from battering the local bourse. In June 2009, the FSC lifted the ban on short selling of non-financial stocks.

   Foreigners' short selling quadrupled to around a daily average of 400 billion won (US$370 million) recently, said Kim.

   Meanwhile, the FSC chairman stressed the importance of international cooperation in coping with the ongoing financial turmoil.

   "International cooperation is essential to prevent the current turmoil from developing into a global economic crisis," Kim said. If these efforts fail, the economic recovery may face difficulties for a long time."

Source: Yonhap News (August 11, 2011)

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