No Bottom in Sight for Korean Stock Market

Global financial fears and the specter of a looming recession rattled the Korean market again yesterday, plunging the Korean stock market into an abyss and sending the won’s value plunging against the U.S. dollar.

The benchmark index KOSPI tumbled 61.51 points (5.14 percent) to close at 1,134.59, the lowest since 1,122.65 on Sept. 6, 2005.

News of the drops on Wall Street rattled the KOSPI in early trading yesterday, and the index dropped further on net foreign selling. In afternoon trading, the market plunged more than 100 points, sliding below 1,100.

The tech-heavy KOSDAQ market fell 15.44 points (4.4 percent) to close at 335.53, the lowest since 333.9 on Aug. 9, 2004.

The Korean won plummeted 42.9 points to close at 1,363 against the dollar. In early trading, the rate shot up to 1,400 but eventually dipped due to profit-taking.

jefflee@donga.com