Kospi down over 2% Tuesday on concerns of Silicon Valley Bank fallout

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Kospi down over 2% Tuesday on concerns of Silicon Valley Bank fallout

Published: 14 Mar. 2023, 10:07

Electronic display boards at Hana Bank in Seoul show Tuesday market. [YONHAP]

The Kospi plunged more than 2 percent on Tuesday on concerns of the contagion effects of the Silicon Valley Bank (SVB) fallout.

The Kospi decelerated as much as 2.06 percent upon the market's open on Tuesday, while the Kosdaq fell as low as 2.62 percent.

The won is trading around 0.40 percent lower than the day before.

The market managed to close higher on Monday as the U.S. government stepped in to shore up deposits at the SVB, the largest U.S. bank to have been shut down since the 2008 financial crisis.

But the U.S. Treasury Secretary Janet Yellen said Sunday the government won’t bail out SVB.

Stocks of financial companies in Korea are down by more than 3 percent.

Shares of KB Financial Group went down as low as 3.58 percent, while that of Hana Financial Group plunged by 4.68 percent.

BY JIN MIN-JI [jin.minji@joongang.co.kr]