WhyItDropped

KOSPI · February 21, 2000

The venture heat cools

-5.82%

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 21 February 2000 the KOSPI fell 5.82% in a single day
  • The 1999 venture mania had peaked and KOSDAQ was cooling fast
  • US rate rises were continuing and appetite for risk assets was shrinking worldwide
  • Domestic rates rose too, and money that had been invested on borrowed funds started being unwound
  • The investment trust problems had not been fully resolved, so money kept flowing out
  • The decline that began around here ran until September 2001

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.