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/Financial Services Commission

South Korea's financial authorities and the Korea Exchange (KRX) have denied rumors that they are planning to ease or gradually abolish the KOSDAQ market's daily price limits.

On Nov. 12, the Financial Services Commission (FSC) said, "Claims circulating recently on the internet and social media about additional KOSDAQ measures on Nov. 13 are entirely false."

Earlier, rumors had spread online that the government would announce additional measures to revitalize the KOSDAQ market on Nov. 13 and was considering easing or gradually abolishing the current daily price limits of ±30%.

The rumors also claimed that the government planned to overhaul related regulations to encourage trading by retail investors and boost market liquidity.

The Korea Exchange also issued a clarification that day, saying, "Claims circulating online that additional measures to revitalize the KOSDAQ market will be announced and that easing or gradually abolishing the current price limits is under consideration are entirely false."

The Financial Supervisory Service (FSS) had also denied rumors that a meeting would be held to discuss measures to stimulate the KOSDAQ market.

"Spreading baseless rumors may constitute unfair trading under the Capital Markets Act, and we will take strict action if any illegal activities are confirmed," the FSC said.

It added, "We urge investors not to make investment decisions based on rumors from unverified sources and to check all policy-related information against official press releases."

                                                                                                                  Kim So-ra