So KOSPI will again be down 12% tonight. Makes the index uninvestable for institutions that maintain risk model / care about asset marginal contribution to risk.
*CIRCUIT BREAKER TRIGGERED AFTER S. KOREA'S KOSPI PLUNGES 8%
*KOREA'S KOSPI EXTENDS DROP TO 10% AFTER TRADING RESUMES
The chart shows that the South Korean KOSPI stock index has doubled since last August (green) and has already corrected 17% from Friday's high (red), including a 10% correction today.
This market is not for the faint of heart.
South Korea's market is retail-dominated. It is estimated that up to 70% of its trading is retail, compared to about 20% for the NYSE.
For years, South Korea was the world's largest equity options market by contract volume, even larger than the United States. This is a remarkable fact for a mid-sized economy.
This is what retail-dominated markets do. They don't rally, they double. They don't correct, they crash.
South Korea imports 94% of its oil, with 75% coming from the Middle East. So, it is easy to see why its "degens" are panicking.
한국 경제의 펀더멘털은 심각한 문제가 있다.
그런데도 책임있는 당국자들이 펀더멘털이 좋다고 하니,
마치 IMF 사태 전야의 데자뷔 같다.
공개된 국무회의를 보면
정부 내에서 나쁜 정보는 공유되지 않고 있다.
증권사 영업부장인 줄 착각하게 하는,
금융위원장의 보고를 보다 보면 걱정이 많이 된다