The government will set up a 500 billion-won fund to stabilize the financial market. 

Kim Yong-beom, vice chairman of the Financial Services Commission(FSC), revealed the plan on Monday at a meeting with senior executives from brokerages to discuss plans to deal with recent plunges in the stock market.

The FSC vice chief said that the government will increase its planned fund of 200 billion won for the secondary KOSDAQ market to 300 billion won and begin investing in underestimated tech firms using the fund from next month. 

Kim said the government will raise another fund of 200 billion won to invest in both the benchmark KOSPI and KOSDAQ markets.