Brokerages will pool fund to calm stock market

By Nam Kwang-sik
SEOUL, Oct. 10 (Yonhap) -- A local stock brokers association said Friday it is
pushing for the creation of a joint fund that could be used to calm the turbulent
market.

Senior officials of the Korea Securities Dealers Association and presidents of
local securities companies said they agreed to form the fund with cash reserves
from market agencies -- including the nation's stock market operator Korea
Exchange and Korea Securities Depository -- during an emergency meeting.
They financial bodies pledged to refrain from selling instruments such as
foreign funds in the local equity markets to curb the currency's steep
depreciation against the U.S. dollar, according to the association.
South Korea's key index tumbled 4.13 percent, or 53.42 points, to close at
1,241.47 Friday.
The local currency closed at 1,309.00 won to the greenback, up 70.5 won from
Thursday's close. It fell to as low as 1,460.00 won during the session, the
weakest since April 1998.
Participants in the meeting called on the government to deduct corporate taxes on
share buybacks and to temporarily exempt securities transactions taxes, it added.
They plan to operate an emergency consultative group to stabilize the market
crisis, the association said.
Local stock market agencies formed a fund worth 400 billion won (US$305.6
million) in 2003 for the same reason.