The KOSPI and KOSDAQ indices fell by over 10% on April 4 due to the war crisis involving the US, Israel, and Iran, marking the highest drop since the 2001 September 11 attacks.
On April 4, the KOSPI and KOSDAQ stock indices experienced a significant drop, each declining by over 10% as a result of the escalating conflict involving the US, Israel, and Iran. The KOSPI index closed at 5093.54, reflecting a staggering drop of 12.06% (698.37 points) from the previous day. Over a two-day period, the KOSPI experienced an overall decrease of 19.3%, which translates to a 1150.59 point drop, surpassing the previous record set following the 9/11 attacks in 2001.
The trading day began with the KOSPI already down by 3.44% at 5592.59, but it quickly worsened, leading to the activation of a sell-side circuit breaker within just six minutes of opening at 9:06 AM. This mechanism halts trading to prevent further decline, and despite these protections, the market's slide continued, prompting a circuit breaker to be triggered for a 20-minute suspension of trading when the KOSPI dropped over 8% from the last trading day.
In terms of individual stocks, major companies saw dramatic losses: Samsung Electronics fell by 11.74%, SK Hynix dropped by 9.58%, and Hyundai Motor lost 15.80% of its value. While foreign investors resumed buying shares worth 228.8 billion won, domestic institutional investors sold off a net total of 579.4 billion won, further illustrating the volatile market response to this geopolitical crisis. The KOSDAQ index also ended down by 14%, reflecting similar alarm across the tech-heavy market, making this the first simultaneous activation of circuit breakers in both the KOSPI and KOSDAQ since the dark days of August 5, 2024, also known as 'Black Monday.'
