December 14th marked the first time the benchmark Korea Composite Stock Price Index (KOSPI) finished over 2,000 in 37 months.
The KOSPI first surpassed the 2,000 mark on July 25th, 2007, or ten years after the Asian financial crisis hit. However, the KOSPI plunged below the 1,000 mark in the wake of the global financial crisis that erupted in 2008.
The KOSPI’s performance in December was seen as an indicator that the South Korean economy’s foundation remains strong despite Europe’s debt crisis, North Korea’s artillery attack on Yeonpyeong and China’s move to resort to a nonmonetary retrenchment policy.
Some have issued mixed projections over whether the KOSPI will remain above 2,000. Local firms, however, are performing better now than in 2007, indicating that the KOSPI is highly likely to remain over 2,000 and could witness sharper growth in the future.