| End of 2002 | End of June 2003 | Change | |
| KOSPI | 627.55 | 669.93 | +6.7% |
| Market Capitalization (KRW m) | 258.6 | 278.0 | +7.5% |
| Daily Average Trading Volume (Shares m) | 857 | 602 | -29.7% |
| Daily Average Trading Value (KRW m) | 3,041 | 2,018 | -33.6% |
During the first quarter of 2003, the stock market experienced doldrums due mainly to the geopolitical risks caused by the war in Iraq and the North Korean nuclear issue. Domestic issues such as accounting scandal at SK Global and financial problems of credit card companies also cast clouds over the market. The KOSPI continued a downturn trend until it declined to half-year-low of 515.24 on March 17.
However, in late March, as investors, especially foreigners, returned to the market with increased confidence, the KOSPI turned to a rally and the bullish trend continued throughout the second quarter. The index closed at 669.93, up by 6.7% from the end of last year.
Factors behind the 3-month long rally included:
- Growing expectation of U.S. and global economic recovery fueled by stabilizing oil prices as a result of the early end of Iraq War, and
- Increasing possibility of peaceful resolution of North Korea's nuclear issue stemmed from the summit meeting between U.S. and Korea.
