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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.

South Korea announced about its bank’s foreign exchange traffic up to $100 billion with the aim to support markets throughout the financial crisis. This decision was taken in cooperation of the country government with the central bank. They have also added that central bank will provide $30 billion in liquidity with the aim to support the banks and exporters of the country as well as to help small banks in obtaining loans from foreign exchange reserves. Furthermore all deals of the banks of the country with international institutions made in foreign exchange from October 2008 to June 2009 will be covered for a period of three years.

The head of South Korea’s financial regulatory agency refuted the statement that the local markets may experience crisis due to capital outflow from the country this Monday. According to Jun Kwang-woo the chairman of the Financial Services Commission the country is quite ready to experience any increase in USD demand.