A Middle East-driven oil shock is sending South Korea's capital markets into sharp volatility, including a plunge in the KOSPI. Adding to the pressure, concerns that high oil prices will be prolonged have pushed the won-dollar exchange rate up to 1,500 won, further raising uncertainty in financial markets.

The combined rise in oil prices and the exchange rate is widening stock-market swings to extreme levels. Warnings are also flashing about overheated investment, with credit trading halted amid a debt-fuelled trading boom. Financial authorities and the brokerage industry are raising risk management standards to stabilise the market.

Banks, in particular, are on alert to secure foreign-currency soundness amid exchange-rate fluctuations. With multiple external headwinds overlapping, proactive risk management and indicator monitoring across the financial sector are more urgent than ever.

• KOSPI plunges on Iran-led 'oil shock'... "We need to watch where oil prices head" • 'Severe volatility' sends KOSPI sharply higher early... KOSDAQ also up about 4 percent • Exchange rate rebounds by nearly 20 won on worries high oil prices will last longer... in the 1,480-won range • Won-dollar exchange rate eyes 1,500... banks in emergency 'soundness management' • NH Investment & Securities re-halts credit trading in two days... 'debt investing' limit exhausted

Financial authorities have moved to crack down on unfair trading and strengthen preventive supervision to establish order in capital markets. The Financial Services Commission filed a complaint with prosecutors against 11 people, including a hospital director, accused of taking part in stock manipulation worth about 100 billion won, showing its resolve to respond strongly to serious financial crimes. After a Korea Exchange investigation showed the number of unfair trading notifications last year reached 98 and cases of insider trading were frequent, the Financial Supervisory Service held an emergency meeting with brokerage executives and urged tighter risk management for margin loans.

The FSS plans to further strengthen its preventive supervision system, moving away from a focus on punishment after the fact and pursuing intensive screening of high-risk products. It is also focusing on tightening discipline across the financial sector by presenting supervisory guidance to the banking industry that, in times of crisis, it should treat securing soundness as an opportunity. The authorities' steps are seen as aimed at making investor protection and restoring market confidence the top priorities as volatility expands.

The government also decided to refer 14 cases for investigation following an audit of NongHyup, including 6 cases involving NongHyup Chairman Ho-dong Kang (강호동) and key executives. The government said it confirmed illegal acts, abuses of power and lax budget execution by key executives, and cited the failure of internal controls and an election system vulnerable to money and gifts as causes.

• FSC files complaint with prosecutors against 11 people including hospital director over stock manipulation worth about 100 billion won • FSS holds emergency meeting with brokerage executives... "Strengthen margin-loan risk management" • FSS strengthens preventive supervision of financial investment... pushes intensive screening of high-risk products • FSS presents supervisory direction for banks... "The current crisis is rather an opportunity" • Korea Exchange reports 98 unfair trading cases last year... insider trading 'most' • Special audit finds many irregularities at NongHyup... government to refer 14 cases for investigation • Cutting money-based elections... ruling party and government push creation of NongHyup audit committee and election overhaul

Domestic fintech companies are stepping up an IPO race for capital-market listings, highlighting their technology and growth potential. As Viva Republica (Toss) declared the start of the Currency 3.0 era and presented a vision for a borderless financial super app, overseas remittance specialist Hanpass is seeking the fintech sector's first successful IPO, aiming to become a global everyday financial platform.

Hecto Financial is also accelerating expansion of its business scope, including securing all foreign-exchange licences and building out its line-up as a global financial platform. Large platforms such as Naver Pay are also stepping up digital innovation by combining online and offline services, reinforcing their market dominance.

• K-fintechs kick off 'IPO race' on growth and technology • Hanpass moves toward first IPO in overseas remittance... listing seen amid Middle East-driven uncertainty • "Provide everything for foreigners"... Hanpass challenges for global everyday and financial platform • Toss: "Open the Currency 3.0 era"... presents borderless financial super app vision • Hecto Financial secures all foreign-exchange licences... completes global foreign-exchange financial platform • Naver Pay signs business agreement with Retail & Insight... "Will lead digital innovation for marts nationwide"

Other key moves in the finance and fintech industries were also compiled.

KB Financial Group plans to intensively review compliance measures in line with legislation for the Digital Finance Safety Act and the enforcement of the Framework Act on Artificial Intelligence, and to establish group-wide consistent guidelines against new security threats such as data leaks and model bias stemming from the spread of AI services. KB Kookmin Bank signed a commitment to invest 500 billion won in the 1 trillion won KB Kookmin Growth Infrastructure Fund and is pushing to develop a strategic model to support productive finance.

• KB Financial holds 'Group Information Security Council'... pre-emptive response to financial security risks in AI era • KB Kookmin Bank invests 500 billion won in 'KB Kookmin Growth Infrastructure Fund' • KB Kookmin Bank strengthens support for productive finance by developing SME-focused model

Shinhan Financial Group secured bids totaling 529 billion won, twice the reported amount, in a demand forecast for the issuance of hybrid capital securities, succeeding in the fundraising and confirming the stability of South Korea's capital market and trust in financial institutions. Shinhan Bank will expand customer convenience services through business agreements with the Jogye Order and others.

• Shinhan Financial demand forecast for hybrid capital securities succeeds amid rising market volatility • Shinhan Bank signs business agreement with Jogye Order... expands convenience services for believers • Shinhan Bank visits K-beauty company... strengthens support for productive finance

Hana Bank will use financial infrastructure to support the stable settlement of companies seeking to relocate to Jeju and promote investment attraction. Woori Bank will create a prepaid card for foreign tourists and carry out support projects to help low-income people with infertility and childbirth.

• Hana Bank creates public-private base for attracting companies with Jeju Special Self-Governing Province • Woori Bank to make prepaid card exclusively for foreign tourists • Woori Bank to ease childbirth inequality... helps low-income people with infertility and childbirth

Toss Bank apologised for a computer error involving an abnormal yen exchange rate and decided to compensate customers involved in abnormal transactions with 10,000 won. The FSS conducted an on-site inspection and estimated losses could be on the order of 10 billion won.

• Toss Bank apologises for computer error in yen exchange rate... compensates customers in abnormal transactions with 10,000 won • FSS conducts on-site inspection of Toss Bank over 'half-price yen'... estimates losses on the order of 10 billion won