Seoul shares experienced 8 percent fall thus reaching its lowest level since 2005. The fall was caused by the fears of global crisis that increased due to low US earnings and quite negative forecasts. For instance, the Korea Composite Stock Price Index decreased by 7.8 percent thus reached the lowest level since July 2005 and the Kosdaq market declined by 7.97 percent to its lowest level that was ever reached.
According to the analysts these losses showed nothing but the fears that the recession and job losses will decrease the demand at the South Korean market. Due to Kim June-kie a market analyst at SK Securities the issue of US earning caused the companies to fire their staff to decrease the costs. Therefore the problem of unemployment and its consequences on the country economy becomes apparent from day to day.
He has also said that while companies are trying to keep stable assets like USD the assets of the emerging economies are being sold. The Korea Exchange stopped the trades for five minutes because of unstable future prices. Furthermore according to the data provided by the Korea Exchange the foreign ownership in KOSPI decreased to the point of 29.5 percent. Due to Kim June-kie the South Korea should remain a stable economy to play the same role in foreign selling. Thus there is quite obvious need for normalization of the situation at the forex markets. The matter is the unstable currency of the country shows only how vulnerable are the financial markets and the economy of the country that is quite targeted at the imports.
Exporters and heavy industry experienced the first losses after the global crisis was contributed by the global market events. The shares of well-known companies continued to decrease. For instance Samsung Electronics index decreased by 8.27 percent and the POSCO – by 8.45 percent, the Hynix Semiconductor declined by 9.02 and LG Electronics – by 8.18 percent.