Kosdaq Price Limit Abolition
Image: Korea JoongAng Daily
The rumor
Rumors have circulated online and on social media claiming that South Korea's financial authorities are reviewing plans to ease or gradually abolish the Kosdaq market's daily price limit. The claims suggested that the goal was to boost trading by retail investors and expand liquidity, with details supposedly set to be announced following inter-ministerial consultations.
The rumor quickly gained traction as it touched on market regulations and retail investor participation. Social media posts specifically claimed that additional support measures for the Kosdaq index would be officially announced by the government.
The truth
Financial regulators have explicitly stated that the claims are completely untrue. According to the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS), rumors regarding an announcement of additional Kosdaq measures or the review of phasing out the price limit are entirely false.
Furthermore, the Korea Exchange stated that the claims were unfounded. The daily price limit for both the KOSPI and Kosdaq markets has remained capped at plus or minus 30 percent since June 2015 and has stayed unchanged for 11 years.
Financial regulators also warned that spreading groundless rumors can constitute unfair trading under the Capital Markets Act and that strict action will be taken if illegal activity is confirmed.
Where it is being claimed
The claims are being shared online and on social media in South Korea.
In short False
What is true
- The daily price limit on the Kosdaq has been at plus or minus 30 percent since June 2015.
- Financial authorities warned that spreading groundless rumors can constitute unfair trading under the Capital Markets Act.
What is false
- Financial authorities are planning to abolish or ease the Kosdaq daily price limit.
- The government is scheduled to announce additional Kosdaq support measures.
Sources
- Korea JoongAng Daily – Regulators reject Kosdaq price-limit rumor
- BigGo Finance – South Korea's Financial Authorities Deny KOSDAQ Price Limit Abolition Rumors, Vow Strict Action on False Information
- Seoul Economic Daily – False Reports of KOSDAQ Support Plan Spread Online, Regulator Warns