Watchdog seeks to provide liquidity to brokerages, asset managers

SEOUL, Oct. 23 (Yonhap) -- South Korea's financial watchdog said Thursday that it is reviewing measures to provide liquidity to securities firms and asset managers as part of efforts to help stabilize local stock markets.

"Institutional investors are moving to secure more liquidity in preparation for
possible massive fund redemptions, which could push the local stock market to
slide further," Lim Seung-tae, secretary general of the Financial Services
Commission, told reporters.
"They failed in their roles as institutional investors, so given current market
conditions the government is studying ways of providing liquidity to them," he
said.
His remarks came as the country's key stock index, the KOSPI, continues to lose
ground on fears that financial turmoil is eating into the real economy. The index
has lost nearly 40 percent so far this year as foreign investors pulled money out
of local stocks.
Earlier in the day, the watchdog also said it will continue to ban short selling
of stocks for a longer than expected period to help stabilize the local stock
market.
sam@yna.co.kr
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