Stocks in South Korean markets drop due to the coronavirus scare

south korean stock market coronavirus

As the coronavirus scare gripped South Korea, the markets in the Asian country took a nosedive. The markets in the country saw a 3% drop. Following the rapid spike in the coronavirus cases over the weekend, the country raised the alert to the highest level.

Samsung confirmed a case of coronavirus at its mobile device factory in the southeastern city of Gumi. The floor where the employee works has been shut down for now. The Gumi factory is mostly responsible for a portion of smartphone production for the domestic market. In the morning trade, Samsung Electronics’ stocks were down by 2.5%.

In a news release, Samsung said: “The company has placed colleagues who came in contact with the infected employee in self-quarantine and taken steps to have them tested for possible infection.”

The number of people affected by coronavirus in South Korea doubled over the weekend to 763.

The Korea Composite Stock Price Index (KOSPI) dropped by 3.2%, its lowest level since February 3. Kim Yong-beom, South Korea’s vice finance minister said that measures would be announced soon to contain the impact of the virus.