Seoul August 06 (QNA) - South Korea's financial authorities said on Monday they were ready to take action to counter extreme market volatility.

This came after the Korean Composite Stock Price Index (KOSPI) recorded its worst ever collapse on Monday, falling 234.64 points, or 8.77 percent, to close at 2,441.55, as investors sold off on concerns about a U.S. economic recession.

The Korean stock market recorded a strong recovery today, rising 4.52 percent, or 110.40 points, to reach 2,551.95 points in early trading.

South Korea's Yonhap news agency quoted Finance Minister Choi Sang-mok as saying in a meeting with Bank of Korea Governor Ri Chang-yong and Financial Services Commission Chairman Kim Byung-hwan that financial authorities will remain vigilant against market uncertainty and will quickly implement emergency plans through coordinated cooperation among relevant agencies.

The meeting agreed that the recent market collapse had been exaggerated, with several factors clustered together, including the economic slowdown in the United States, Japanese yen deals and others.

Officials stressed that South Korea's economy continues to recover moderately, noting that the country is well-positioned to implement necessary measures to cope with external shocks and market volatility. They added in their statement that market participants should remain calm and make rational decisions, considering excessive market volatility. (QNA)