WhyItDropped

KOSPI · December 7, 1998

Restructuring progress

+10.33%

single-day change vs previous close

Part of a longer stretch

Korea's post-IMF rebound

midway through · 1998-06-16 → 1999-04-27, +183.56% over the whole period

What happened that day?

  • On 7 December 1998 the KOSPI rose 10.33% in a single day
  • The currency crisis low had passed and recovery was under way
  • Announcements of business swaps and affiliate cleanups among the big conglomerates signalled that restructuring was actually happening
  • News of foreign capital entering Korean banks and companies followed — dollars coming in, which also helped the exchange rate
  • Rates fell below pre-crisis levels and money started moving into shares
  • This run carried through to the old high in April 1999

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.