WhyItDropped

KOSPI · November 3, 1997

A bounce before the fall

+8.68%

single-day change vs previous close

Part of a longer stretch

Korea's IMF crisis

midway through · 1997-06-17 → 1998-06-16, -64.66% over the whole period

What happened that day?

  • On 3 November 1997 the KOSPI rose 8.68% in a single day
  • It came right after the late-October plunge as the Asian crisis spread
  • The government said it would announce measures to stabilise financial markets, and the market bounced
  • At that point some still believed Korea could hold out without going to the IMF
  • But reserves kept draining, and three weeks later, on 21 November, the government asked the IMF for a bailout
  • So this surge was the last bounce before the fall. The low was more than half a year away

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.