US recession fears send Kospi plunging by record high of nearly 9%

South Korean stocks tumbled by the most on record to a near nine-month low Monday amid intensifying fears over a US economic slowdown, with big tech coming under heavy selling. The Korean won fell against the US dollar.

The benchmark Korea Composite Stock Price Index (Kospi) plummeted a record 234.64 points, or 8.77 percent, to close at 2,441.55, after dipping to as low as 2,273.97 at one point, following a 3.65 percent loss the previous session.

It is the lowest closing price since Nov. 14, when the index finished at 2,433.25.

Trade volume was heavy at 749.3 million shares worth 18.4 trillion won ($13.4 billion), with decliners sharply outnumbering gainers 919 to 10.

Foreign investors dumped a net 1.5 trillion won worth of stocks to spearhead the record-breaking crash. Institutions also sold a net 273.6 billion won, while individuals purchased a net 1.7 trillion won.

The stock market was halted for 20 minutes during midday trading for the first time in four years, due to the sharp decline.

The bourse operator issued a circuit breaker at 2:14 p.m. to halt trading for 20 minutes as the Kospi fell more than 8 percent for more than one minute at that time.

It is the first time since March 19, 2020, that the main bourse has experienced a circuit breaker.

The sharp decline came after poorer-than-expected employment data in the United States and the sluggish performance of big tech companies.

In Seoul, most stocks went south.

Market bellwether Samsung Electronics sank 10.3 percent to 71,400 won, and its chipmaking rival SK hynix slumped 9.87 percent to 156,100 won.

Leading battery maker LG Energy Solution dropped 4.17 percent to 322,000 won, and top automaker Hyundai Motor plunged 8.2 percent to 224,000 won.

No. 1 oil refinery SK Innovation dived 11.03 percent to 92,800 won, and steel giant Posco Holdings collapsed 11.78 percent to 314,500 won.

Major chemicals company LG Chem plummeted 11.67 percent to 272,500 won, and shipbuilder Hanwha Ocean nose-dived 13.48 percent to 26,950 won.

The local currency was trading at 1,374.8 won against the dollar as of 3:30 p.m., down 3.6 won from the previous session. (Yonhap)