KOSPI · January 5, 2000
The First Crack in the KOSDAQ Boom
-6.87%
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?
- 5 January 2000 — KOSPI fell 6.87%, in the first week of the year
- Korean equities had risen sharply through 1999, led by internet names
- On the KOSDAQ market in particular, shares of companies with unclear business models had commonly risen many times over
- Trigger was a correction in US tech stocks plus rising domestic rates
- The deeper problem: the rise rested on expectation, not earnings. When expectation wobbles, there's no floor under the price
- Fell 34.65% from peak, and the decline continued through that year
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.