Finance Minister Hong Nam-ki has vowed to create a stock market stabilization fund jointly invested in by financial industries to prevent excessive market uncertainties from eroding the real economy and business sentiment. 

Hong revealed the plan on Thursday during an emergency meeting on economic issues that was attended by Minister of SMEs and Startups Park Young-sun and Financial Services Commission Chairman Eun Sung-soo. 

Hong said the envisioned fund will be tentatively operated until the stock market recovers. He said the fund will play the role of promoting stability in the entire stock market through investments in key index-tracking products rather than individual stocks.  

The minister said he will also create a bond market stabilization fund jointly invested by financial industries.  

He cited that a bond market stabilization fund had played a key role in South Korea’s efforts to overcome the 2008 global financial crisis, and said that he will do his best to breathe new life into the market based on past experiences.  

Hong pointed out that if the financial market becomes paralyzed, businesses that want to raise funds by issuing corporate bonds and stocks will not be able to secure any money.  

He stressed that boosting money circulation through buying bonds is crucial amid difficult market conditions.