Price Limit
The price limit system is the range of stock market that limits the price of individual stocks during the day. The US and Europe have no restrictions on the stock market price, but they are implemented in countries such as Japan, Taiwan and Korea. As of 2014, Japan has an average price limit of 21%, while Taiwan has a price limit of 7%. It was introduced in 1995 in Korea and has been operating at a 15% price limit since 1998, but since June 15, 2015, the price limit has been increased to 30%. As a result, there were concerns about side effects such as a surge in theme stocks as well as hopes for the revitalization of the stock market. Shortly after the price hike in June 2015, preferred stocks skyrocketed, and after that, demand for copper stocks, which are less than KRW 1,000, began to skyrocket.