Mirae Asset Securities noted on the 7th that a 6% decline in the KOSPI index over two trading days ranks in the top 1.1% based on the decline rate since 1990. On that day, the KOSPI index fell below the 2340 level, ranking 103rd in terms of decline rate out of 9116 trading days.
Kim Seok-hwan, a researcher at Mirae Asset Securities, explained that there have been 17 instances where the KOSPI index declined more than 10% over two trading days. The largest drop occurred during the global financial crisis in October 2008, at 17%.
Research Institute Kim noted that of the 17 instances where the KOSPI index dropped more than 10% over two trading days, 15 were during events such as the Asian financial crisis, the dot-com bubble, and the global financial crisis, excluding those in March 2020 (COVID-19 pandemic) and August 2024 (Black Monday and Friday incident).
Research Institute Kim emphasized that the KOSPI 200 index demonstrated strong support at a price-to-book ratio (PBR, market capitalization ÷ net worth) of between 0.75 and 0.8 during past crises. The lowest point recorded during the COVID-19 pandemic was 0.62.
However, Research Institute Kim pointed out that unlike past crises, the uncertainty regarding tariffs under the Donald Trump administration is an issue. He stated, “Since uncertainty is significantly reflected in prices, the direction of uncertainty resolution will be important going forward.”