South Korea's Kospi Plunges 40%, Pressuring President Lee Jae Myung
Updated
Updated · Bloomberg · Aug 3
South Korea's Kospi Plunges 40%, Pressuring President Lee Jae Myung
3 articles · Updated · Bloomberg · Aug 3
Summary
A roughly 40% drop from the Kospi’s peak within a month set off alarm among South Korea’s top officials last week, turning a market rout into a political test for President Lee Jae Myung.
Authorities had promoted high-risk products during January’s rally to draw capital and support the won, but that strategy amplified the reversal as losses spread through a retail-driven market.
Lee was in South America on an 11-day diplomatic trip when the selloff deepened, leaving him and key aides scrambling from abroad for ways to contain the meltdown.
The latest slide follows a 22% July plunge, four trading halts and record retail selling after investors poured 78 trillion won into the market in May and June.