[Special Economy=Eunji Kim]The volatile Chinese stock market is creating concerns that its instability can spread to the Korean economy.

On Monday, Chinese stocks nose-dived, and the newly-placed circuit breaker, a safety measure built to avert panic in markets by putting a temporary freeze in trading, was triggered twice.

The wild ride by stocks in China can restrain investment confidence in Korea, a country that depends heavily on China for trade.

Analysts say these kind of ripples are due to the declining Purchasing Managers' Index (PMI), poor economy, middle east geopolitical anxiety, possibility of a selling of shares on a large scale and renminbi devaluation.

Because of these variable factors, Chinese stocks will continue to seesaw; the stock market in that country started plunging last July, causing bearish impact on Asia.

Last August, on the 24th, a day known as "Black Monday," Shanghai Composite Index tumbled 8.49%, and at that time, KOSPI simultaneously fell 2.47%, closing at 1829.81points.

These interlinked stock markets in the two countries show when one goes down, the other falls too.

To combat this, the Financial Supervisory Commission (FSC) in Korea has moved the date of a meeting, set to examine the market, to earlier.

“We will keep a close watch on the waves in the Chinese stock market,” said Kim Yong-bum, director-general at FSC. “We will look at the situation for one more day than decide on when to open the meeting.”