Seoul Mayor Attacks Economic Policy
Seoul Mayor Oh Se-hoon criticized the South Korean government’s stock market policies as a “local election stock gamble” following a sharp drop in domestic equities, fnnews.com reported.
The benchmark Kospi index fell below the 5,000-point threshold within three minutes of opening on Nov. 6, triggering a circuit breaker. Trading was temporarily halted across the main stock market as prices plunged.
Circuit breakers halted Kospi trading 11 times
Circuit breakers halted trading on the Kospi market 11 times over the course of the year. Nine of those halts occurred during a five-month span starting in June, immediately following local elections, according to fnnews.com.
Mayor Oh highlighted the timing of the market swings in a statement posted to his Facebook page. He pointed out that stock prices surged prior to the elections and dropped repeatedly afterward.
National Pension and Debt Policies
The Seoul mayor focused his criticism on specific government actions taken ahead of the elections. He stated that the government raised the National Pension Service target for domestic stock investments from 14.9% to 20.8% on May 28, effectively turning the pension fund into a market prop.
Government approvals also allowed the release of high-debt products tracking the daily price movements of major technology stocks, including Samsung Electronics and SK Hynix, on May 27. Mayor Oh called these offerings extremely high-risk speculative instruments.
Calls for Apology and Transparency
Mayor Oh demanded that President Lee Jae-myung issue a direct apology to citizens who utilized borrowed funds for stock investments based on government policy. He also called for practical measures to protect retail investors from further losses.
The city official urged authorities to disclose who made the decisions to increase pension fund equity holdings and approve high-debt investment products. He characterized the policy decisions as a dangerous overreach that exposed citizens to severe financial harm.
Frequently Asked Questions
When did the Kospi drop below 5,000 points?
The Kospi fell below the 5,000-point mark within three minutes of market open on Nov. 6, prompting an immediate circuit breaker.
How many times did circuit breakers trigger in 2026?
Trading halts occurred 11 times on the main stock exchange during the year, with nine of those suspensions concentrated between June and November.
What changes were made to the National Pension Service?
The government raised the pension fund’s domestic equity investment target from 14.9% to 20.8% on May 28.
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