Key facts
- South Korea's Finance Minister Koo Yun-cheol stated the government will use all available tools to fight inflation.
- Taxes and fiscal measures will be used to combat rising inflation.
- Price stabilization is the current top priority for the South Korean government.
- Seoul stocks extended gains on Thursday morning.
- The benchmark KOSPI rose nearly 5% by late morning on Thursday.
- A semiconductor rally led the gains in Seoul stocks.
- Micron Technology's better-than-expected earnings eased concerns over artificial intelligence growth.
South Korea's top economic policymaker, Finance Minister Koo Yun-cheol, has vowed to employ all available government tools to combat rising inflation and reduce the financial strain on citizens. The government's primary focus is currently on price stabilization, and Koo indicated that measures including taxes and fiscal policies will be utilized to achieve this objective. The announcement comes amidst broader economic concerns about inflation.
In parallel, the South Korean stock market demonstrated a strong upward trend on Thursday morning. The benchmark KOSPI index saw a rally, increasing by nearly 5% by late morning. This market surge was largely propelled by a strong performance in the technology sector, with a particular emphasis on semiconductor stocks. The positive sentiment in the tech sector was influenced by Micron Technology's earnings report, which surpassed expectations. This better-than-expected performance from Micron helped to alleviate investor concerns regarding the growth trajectory of artificial intelligence.