Worsening domestic financial market

Oil prices in the world market soared sharply and stock markets were plunged into confusion due to the recent crisis in the Middle East. The domestic financial market grew unstable due to the war clouds hanging over the Middle East, the sharp rise in world oil prices and a drop in the U.S. stock market, in addition to the sudden collapse of semiconductor prices in the world market. Our nation is now facing difficulties due to the outside factors, i.e. international problems. Therefore, if these factors do not grow more favorable, our economy will be severely damaged, forcing the people of Korea to tolerate further hardships.

On Friday, the KOSPI once collapsed to the 500 level by plunging 36 points, but closed at 524.60, a drop of 10.11 points from the day before with the inflow of bargain power below market prices just prior to closing. The figure neared the level of 520.06 for the first time since Feb. 26, 1998, immediately after the inception of the ¡®Government of the People.¡¯ The KOSDAQ recorded 80.02, a decrease of 3.93 points.

Thanks to shrinking ¡®buying forces¡¯ in the bond market, the interest rate for 3-year government bonds and corporate bonds increased by 0.10% and 0.05%, respectively, compared to the previous day, while the exchange rate against the U.S. dollar depreciated to 1,132 won at one point with the effect of the stock market¡¯s plunge. In other words, the financial market suffered hardship due to the ¡®triple¡¯ bearish market. Financial experts pointed out that companies are reducing investment as much as they can under the consideration of a liquidity crunch at the end of this year, saying they are concerned that the economic slowdown may accelerate.