South Korea's benchmark KOSPI index closed at 5593.56 points, dropping 69.68 points, or 1.23%, from the previous trading session.

On the same day, South Korea's Vice Finance Minister stated that authorities will closely watch external factors and their impact on the domestic economy and financial markets. The Bank of Korea also noted that it will carefully monitor various risk factors and their effects on the local economy and financial markets.

On Wednesday, South Korea's Ministry of Finance announced plans to tighten regulations on single-stock leveraged exchange-traded funds (ETFs). This includes setting investment caps, potentially limiting individual investors' exposure to such products to no more than 20% of their total investment assets.