South Korea’s President Lee Jae Myung unveiled the nation’s 100 trillion won ($68.2 billion) market stabilization program as Seoul’s stock market experienced historic volatility. The Kospi index swung 12% in both directions within two days, driven by escalating Middle East tensions and a global flight from risk assets.

At a cabinet meeting, Lee instructed officials to manage the fund “appropriately and swiftly” to prevent money market instability, emphasizing that the government would not directly intervene in stock markets. The fund, originally deployed during the 2022 Legoland debt crisis, includes credit market stabilization measures and capital for real estate project financing.

Financial Services Commission Chairman Lee Eog-weon indicated the government would expand the fund if necessary. The program serves as a backstop after record domestic equity losses this week, with the won weakening to levels last seen during the global financial crisis. President Lee framed the market turbulence as part of a “normalization process” for Korea’s undervalued stock market, stressing the need to reform economic systems and eliminate market unfairness.