Unprecedented Panic Crash, KOSPI and KOSDAQ Markets Record 'Worst Ever'

[Asia Economy Reporter Oh Ju-yeon] The domestic stock market has fallen into a panic. In particular, the KOSDAQ market experienced an unprecedented plunge, recording the largest index decline rate in history. The figures are even more devastating than during the crises in 2001 and 2008.

On the 19th, the KOSPI closed at 1,457.64, down 133.56 points (-8.39%) from the previous trading day.

This drop is larger in scale than during the 2008 financial crisis.

[Image source=Yonhap News]

On October 16, 2008, the KOSPI fell 9.44% from the previous day, dropping 126.50 points. In terms of the scale of the decline, the drop of over 133 points on this day is the largest ever recorded since the Korea Exchange began compiling data.

The KOSDAQ index plunged 56.79 points (-11.71%) from the previous trading day, falling to 428.35. This decline rate is even greater than the previous record of an 11.59% plunge on September 12, 2001.

Suh Sang-young, a researcher at Kiwoom Securities, explained, "The reason for today's decline is that after 7 p.m. Eastern Time in the U.S., the Governor of New York mentioned, 'There are tens of thousands of confirmed cases in New York that we do not know about.'

Researcher Suh added, "Afterwards, U.S. after-hours futures sharply turned downward and even hit the lower limit. From that point, the domestic stock market also began a full-scale decline, which ultimately means that COVID-19 is the cause."

This content was produced with the assistance of AI translation services.