Market opens with a sharp decline! South Korea's stock market has "collapsed," leading to widespread concern among investors and analysts. The sudden drop has triggered fears of a broader economic impact, and experts are closely monitoring the situation for further developments.

【Introduction】Korean Market Plummets Over 5%

Let’s take a look at the latest developments in the Japan and South Korea stock markets.

On February 6th, the Korea Composite Stock Price Index (KOSPI) opened with a drop of over 5%. The Korea Exchange (KRX) triggered a 5-minute pause in algorithmic trading after the KOSPI 200 futures fell by 5%.

In individual stocks, Samsung Electronics and SK Hynix followed the overnight decline in U.S. stocks, opening sharply lower.

KRX Chairman Jeong Eon-boo stated on Thursday that South Korea’s benchmark stock index is expected to break through the 6,000-point mark, vowing to work hard to promote stock market development, including extending trading hours to 24 hours.

At the exchange’s first press conference of the year, Jeong Eon-boo said, “Compared to other global markets, I believe our market has the potential to reach at least 6,000 points. I am confident that achieving this goal will not pose any major issues.” He was referring to the benchmark Korea Composite Stock Price Index (KOSPI).

To help boost the country’s capital markets, the Korea Exchange plans to implement a series of measures to promote market development, with the first step being the introduction of pre-market and after-hours trading in June. According to Jeong Eon-boo, the exchange will gradually achieve round-the-clock trading on weekdays, aligning with practices at other global exchanges.

He stated at the meeting, “There are only two ways we can create more liquidity: one is to enable more domestic market participants to invest through effective financing methods, and the other is to find ways to attract foreign investors’ funds.”

“Gradually extending trading hours is necessary so that we can attract capital flows from overseas,” Jeong Eon-boo said. The work to include the Korean stock market in the MSCI index will also proceed, including implementing English-dominant regulatory documents for companies listed on the KOSPI in advance.

The Japanese stock market also declined, with the Nikkei 225 index down 1.34%, closing at 53,098.74 points.

Gold and Silver Plunge Again

Spot silver plunged early in the session, dropping over 9% at one point, then rebounded slightly, currently at $67.82 per ounce; spot gold fell 1.18%, now at $4,720.03 per ounce.

COMEX silver futures tumbled over 15%, latest at $64.955 per ounce.

On the news front, the Chicago Mercantile Exchange (CME) announced on February 5th local time that it would raise the initial margin for COMEX 100 gold futures from 8% to 9%, and for COMEX 5000 silver futures from 15% to 18%.