South Korea’s finance minister, central bank governor and financial regulators are set to meet to discuss recent market developments.

The meeting comes after sharp swings in the country’s stock market. From April to its peak in June, South Korea’s benchmark KOSPI index rose 85%. The rally then reversed as the AI trade unwound, leading to steep declines over the past five weeks.

The weakness continued this week. Earlier today, the KOSPI was down nearly 13% after falling more than 10% yesterday. Losses were later pared, and the index closed down 6%.

That leaves the benchmark still up about 34% for the year, even after a 33% drop in July alone. The move follows an unusually strong stretch in which the market climbed more than 120% in six months, while gains in 2025 had already reached 75% before the recent reversal.

The sharp selloff has raised questions about the degree of leverage and speculation that built up during the rally. For policymakers, the meeting is a way to take stock of market conditions after a period in which gains accelerated quickly and then unwound just as fast, underscoring how closely the KOSPI’s swings can affect sentiment in one of Asia’s most actively watched markets.

The discussion among South Korean authorities reflects the scale of the volatility, even as the market remains well above its level at the start of the year.