WhyItDropped

KOSPI · June 15, 2000

When the KOSDAQ bubble deflated

-5.90%

single-day change vs previous close

Part of a longer stretch

Korea's dot-com hangover

early in it · 2000-01-04 → 2001-09-17, -55.74% over the whole period

What happened that day?

  • On 15 June 2000 the KOSPI fell 5.9% in a single day
  • The US Nasdaq had been collapsing since March and Korean venture stocks were deflating with it
  • In 1999 a KOSDAQ listing alone could multiply a share price. Six months later the heat was gone
  • At the same time trouble at the investment trust companies resurfaced and money flowed out
  • The problems exposed by the Daewoo collapse had not been fully cleaned up
  • The KOSPI kept sliding until September 2001. The old high did not return until July 2005

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 written from the sources listed above.