South Korea’s Kospi index fell 40% in 35 days, outpacing declines seen during Covid, 1987, and the Nasdaq’s dot-com bust.
South Korea’s Kospi index surged 80% in 10 weeks starting in April, only to collapse 40% over the next 35 days. The decline nearly wiped out the entire rally, exceeding the speed and scale of drops during the Covid crash, 1987’s Black Monday, and last year’s U.S. tariff shock.
The 40% drop mirrors the Nasdaq’s dot-com bust from October 18, 1999, to March 10, 2000, when it rose 88% before falling 34% in five weeks. The Nasdaq later bottomed 78% below its peak in October 2002, raising concerns the Kospi could face a prolonged downturn.
Analysts warn the Kospi’s leverage-driven volatility may push it toward 2064, below last April’s low of 2284, if the selloff deepens.