KOSPI Slumps as South Korean President Pours Rp1.149 Trillion into Stock Market

Jakarta, CNBC Indonesia – South Korean President Lee Jae-myung on Thursday called on the government to urgently launch a programme worth 100 trillion won, equivalent to US$68 billion or Rp1,149.06 trillion, to stabilise the country’s financial markets. The bold plan comes amid escalating tensions in the Middle East, seen as a threat to market confidence. Citing The Korean Times, in his opening remarks at the Cabinet meeting on Thursday, Lee warned that the worsening crisis in the Middle East worsens the global economic and security environment. He highlighted that financial markets face rising uncertainty, while energy supply instability and conditions in trade could create broader difficulties across the economy. Lee also called for medium- to long-term strategies to diversify energy import sources to manage volatility in supply and energy prices, which directly affect the broader economy and daily life. At the same time, he instructed authorities to crack down on attempts to exploit volatile market conditions through hoarding, accumulation, or excessive profit-taking, stressing that the government would respond firmly. ‘It seems that some parties are trying to profit from this national crisis without regard for the hardship of others,’ Lee said, quoted by The Korean Times, on Thursday (5 March 2026). ‘In reality, there are no significant disruptions objectively to oil supply, yet petrol prices at petrol stations rose unexpectedly.’ Lee emphasised that the government would discuss possible steps to respond to this sudden surge in fuel prices. The President further underscored the need for rapid and wide policy-financing support for sectors expected to be directly affected by the crisis, notably companies heavily dependent on Middle Eastern exports and the shipping industry. Moreover, Lee instructed the relevant ministries to identify Korean citizens currently in the region and to prepare an emergency evacuation plan to be used if the situation worsens. ‘While ensuring the safety of our citizens on the ground, ensure a rapid and safe evacuation plan that can coordinate with allied countries if required,’ Lee said. He stressed mobilising all available resources, including military aircraft, charter flights, and land routes. Citing CNBC, the Kospi index in South Korea fell by more than 12% on Wednesday.