The benchmark Korea Composite Stock Price Index(KOSPI) plunged more than two and a half percent on Tuesday amid the fallout from the collapse of Silicon Valley Bank in the U.S. last Friday.

The KOSPI lost 61-point-63 points to end the day at two-thousand-348-point-97 points.

The index started off at two-thousand-390-point-36, some 20 points lower than the previous day's close, but the loss widened as the day progressed.

The tech-heavy KOSDAQ also dropped, shedding 30-point-84 points, or three-point-91 percent, to close at 758-point-05.

Fears of more bank busts following the collapse of crypto-focused Signature Bank in New York on Sunday are believed to have dealt a blow to investor sentiment.

The markets were also rattled by anticipation of the U.S. consumer inflation report for February to be released later on Tuesday, Korea time. If the index is higher than market estimates, the U.S. central bank could further raise interest rates despite instability in the financial market.