Can stock market be saved?

The Sorth Korean stock market is sliding in October, the benchmark index has fallen 14% . The government has set up a multimillion dollar (approximately $400m) fund to prop up local stocks. The recent sell-off in the Sorth Korean stock market is fuelled by the concerns about regional geopolitical tensions and the negative expectation of the global economy. The Sorth Korean government wants to stabilise the stock market, since the volatility in the stock market can affect firms' operation, leading to the entire economy's performance. Not only the Sorth Korean government does this sort of thing, but other governments also have done similar things.  However, how effectively can a fund save the stock market?

The stock market performance is dependent of people's expectation about the future. A government intervention cannot restore investors' confidence fully, because buying stocks does not mean the exogenous factors will improve and make firms easier succeed. In addition, some people find that it is a good time for them to escape from the endlessly sliding financial market when the government steps in. Under such circumstance, when the government steps in, it can trigger a greater sell-off, so the market performance would be worsened by the government intervention. Moreover, the government intervention can increase the demand for stocks in a relatively short amount of time, but it cannot change the fundamental of the market.

Overall, the government intervention hardly changes the market fundamental, so it is very unlikely to change the market performance either.