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Wuhan Coronavirus Engulfs South Korean Stock Market
KOSPI and KOSDAQ Fall More than 3% on Jan. 28
Wuhan Coronavirus Engulfs South Korean Stock Market
  • By Yoon Young-sil
  • January 29, 2020, 09:14
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KOSPI and KOSDAQ dropped more than 3 percent on Jan. 28. 

The South Korean financial market is being seriously affected by the Wuhan coronavirus. The Korea Composite Stock Price Index (KOSPI) showed the steepest decline in more than 15 months and foreign exchange rates soared along with bond prices on Jan. 28.

That day, the index plunged 69.41 points to close at 2,176.72, showing the steepest fall since Oct. 11, 2018. Likewise, the Korea Securities Dealers Automated Quotation (KOSDAQ) dropped 3.04 percent to 664.70, returning to the level of late last year. The aggregate values of the stock markets dropped 46 trillion won and seven trillion won, respectively.

The South Korean government is paying close attention to the shock caused by the rapid spread of the virus. “Although it is still too early to predict anything, the Wuhan coronavirus is likely to affect this year’s economic growth rate at least to some extent,” said Deputy Prime Minister Hong Nam-ki, adding, “The government will implement pre-prepared contingency plans for financial market stabilization at the very first sign of further market instability.”