Kathmandu. The South Korean stock market fell sharply . The index fell by more than 5 percent, even though the mechanismto ban the sale of shares in both the main and technology-intensive markets was activated to control the volatility seen in the market.

At the close of trading on Wednesday, the main benchmark index, the Korea Composite Stock Price Index, 5.35, or 409.52 was down by 7,246.79. 

Similarly, Kosda 5.56 or 46.23 has shrunk to the point of 785.00. According to Yonhap news agency, the Kosda q fell below the 800-mark for the first time since September 4 last year.

Korea According to the Exchange{{{}, the mechanism was implemented in the main market at 1:31 local time and 1:33 ‘sidecar’ in the market. Through this process, an attempt was made to protect the market from further decline by temporarily suspending the execution of the order of the program cell. In view of this market situation, South Korea’s Finance Minister Koo Eun-chol has called an emergency meeting with officials of the Bank of Korea and the Financial Regulatory Body. According to the Ministry of Finance, the meeting discussed the current market situation and possible policy responses. 

During the discussion, the participants said that the volatility in the financial and foreign exchange markets has increased due to the possible increase in the global policy interest rate and the expectation of foreign capital outflow. According to officials, foreign and institutional investors are increasing the sale of shares to secure profits and the changing outlook in the global artificial intelligence sector has also affected the market. Stating that the semiconductor sector has increased the risk in the stock market, the government aims toactively promote new development sources in the non-information technology sectors such as bio, defense and aerospace{{} in the coming days.

In addition, officials have pledged to continuously monitor market volatility and risk factors.