WhyItDropped

KOSPI · September 18, 2000

Oil Spike Meets the Chip Downturn

-8.06%

single-day change vs previous close

Part of a longer stretch

Korea's dot-com hangover

midway through · 2000-01-04 → 2001-09-17, -55.74% over the whole period

What happened that day?

  • 18 September 2000 — KOSPI fell 8.06% during a sharp rise in international oil prices
  • Korea imports all of its crude, so higher oil feeds straight into production costs and the trade balance
  • On top of that, semiconductor prices had begun to fall
  • Semiconductors were Korea's largest export. As global IT investment slowed, memory prices dropped
  • Import costs rising while export prices fell, operating at the same time
  • Fell 41.21% from peak

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.