KOSPI · October 6, 1999

The day after the Daewoo bottom

+5.53%

single-day change vs previous close

Part of a longer stretch

The millennium tech rally

early in it · 1999-10-05 → 1999-12-28, +29.88% over the whole period

What happened that day?

6 October 1999 — the KOSPI rose 5.53%. No single cause for that one day could be pinned down
The previous session, 5 October, was the episode low. This was the day right after the bottom
Those three months were when Daewoo's losses surfaced. Korea's second-largest conglomerate owed more than it could carry
Redemption demands piled up at the investment trusts holding Daewoo paper. Funds sold to ordinary savers turned out to hold bad debt
The government was setting up a bond market stabilisation fund — a buyer of last resort for paper nobody else would take
From the 9 July high to the 5 October low the index fell 23.00%
The previous high was regained on 28 December

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.