To pressure South Korean regulators to rescue the market by introducing measures like central bank liquidity injections or a stock stabilization fund to buy stocks, the stock market decline would need to impact financial stability. Judging by specific indicators, we’d probably need to see a sharp drop in the KRW exchange rate. Before it affects the exchange rate, South Korean regulators likely still think this wave of proactive deleveraging is a great success and the impact is manageable Recently, the KRW has been rising, partly due to SK Hynix’s U.S. ADR listing and the conversion of raised USD back to KRW. SKHY KRW