South Korea to Raise Stock Price Movement Limit

seoul-2-web
South Korea last changed the limit in 1998.

With an eye on reviving its economy, South Korea will move the daily price movement limit on stocks from 15 to 30 percent, according to a report from Reuters.

A specific date of when the limit will be raised hasn't been set. The limit last changed in 1998, moving from 12 to 15 percent during the Asian financial crisis. The biggest Korea Composite Stock Price Index (Kospi) will adopt the new limit first, followed by the junior Kosdaq market. 

The South Korean finance ministry predicts the change will bring in 15 trillion won ($14.6 billion) in investments and create approximately 180,000 jobs over the next three years.

The announcement comes as global exchange operators continue to balance the need for growth against limit up-limit down parameters, circuit breakers, and other rules related to price fluctuations and guarding against technical errors such as the one that nearly collapsed Knight Capital Group in 2012.

 

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