KOSPI · October 14, 2008

After the world agreed to prop up its banks

+6.14%

single-day change vs previous close

Part of a longer stretch

The KOSPI in the financial crisis

near the end of it · 2007-10-31 → 2008-10-24, -54.54% over the whole period

What happened that day?

The KOSPI rose 6.14% to close at 1,367.69
Over the preceding weekend, major European governments agreed to inject capital into banks and guarantee lending between them. Washington announced the same approach shortly after
The heart of the crisis was that banks did not trust each other and money stopped moving. A government guarantee breaks that loop
The announcements came over the weekend and Monday; Korea reacted on this session. The lag is plain to see
Korea had a dollar problem on top of it — worry that its banks could not repay the dollars they had borrowed short-term
That is why this market reacted so strongly to news of coordinated action
The bounce was not the bottom. The KOSPI's low came ten days later, on 24 October

Sources

Every figure on this page is recomputed from the original daily closing prices and checked against them at build time. The account of what happened is put together from the public record; where a specific source was consulted it is listed above.