SEOUL, August 5 (AJU PRESS) - Korea's benchmark KOSPI index plummeted 8.77 percent, marking the largest single-day drop in 16 years, on Monday amid growing fears of a U.S. economic recession.
The KOSPI closed at 2,441.55, down 234.64 points from the previous trading day. It was the largest percentage drop since Oct. 24, 2008, when the index fell 10.57 percent amid the global financial crisis.
The point drop was the biggest in history, surpassing the previous record of 133.56 points on March 19, 2020.
The tech-heavy KOSDAQ fell by 88.05 points, or 11.3 percent, to close at 691.28.
During the session, trading was halted for 20 minutes in the afternoon when both markets fell more than 8 percent, triggering circuit breakers for the first time in more than four years.
The massive decline follows weak manufacturing and employment data from the United States, sparking fears of a potential recession in the world’s largest economy and leading to a global market sell-off. Korea’s export-dependent economy is particularly vulnerable to international economic fluctuations.
The Korea Exchange activated a circuit breaker for the KOSPI at 2:14 p.m., after the index fell 8.1 percent.
Earlier, at 1:56 p.m., the same measure was issued for the KOSDAQ when it plunged 8.06 percent.
Circuit breakers are automatic trading halts designed to curb panic selling and excessive market volatility. They are activated when an index falls more than 8 percent from the previous day’s close and remains at that level for one minute.
This marks the sixth time in history that the trading curb has been activated on the KOSPI.
The last time a circuit breaker was issued on the Korean market was on March 19, 2020, during the early stages of the COVID-19 pandemic.
The KOSPI's market capitalization dropped to 1,997.75 trillion won, erasing about 192 trillion won in value. This is the first time since Jan. 22, 2024, that the market cap has fallen below 2,000 trillion won.
The KOSDAQ's market cap fell to 338.43 trillion won, losing about 43 trillion won in a single day.
Combined, the total market cap loss was 235 trillion won.
On the KOSPI, foreigners sold a net 1.53 trillion won of stocks, and institutional investors sold a net 269.6 billion won.
All top 200 large-cap stocks on the KOSPI fell, with Samsung Electronics plunging 10.3 percent to close at 71,400 won, marking its largest drop since Oct. 24, 2008.
Other major decliners included SK hynix (-9.87 percent), LG Energy Solution (-4.17 percent), Hyundai Motor (-8.2 percent), and Kia Corp. (-10.08 percent).