KOSPI · December 28, 2022
Year-end dividend cut-off met tax selling
-2.24%
single-day change vs previous close
Part of a longer stretch
Two months of slipping into year end
near the end of it · 2022-11-11 → 2023-01-03, -10.65% over the whole period
What happened that day?
- The KOSPI fell 2.24% on the day
- Two selling pressures show up in the Korean market every year end
- One is the dividend cut-off. After the day the right to a dividend lapses, the share price opens lower by roughly that amount
- The other is selling to avoid the large-shareholder tax. Holdings above a threshold at year end are taxed, so stock is sold before the date
- This is supply created by rules, not by companies getting worse. It often comes back once the year turns
- 3 January was indeed the bottom of this phase, and the advance from there ran to August of 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.