The Chosun Ilbo criticized the government’s promotion of ‘KOSPI 8000’ on October 23, saying no country does this. After the KOSPI plunged 3.52% on October 22, politicians also began trading blame over the push to lift the index.
In a weekend business-section piece headlined that the government is hyping KOSPI 8000 and that no country in the world does so, the Chosun Ilbo took issue with the government putting a stock-index target up front. We could not separately verify the detailed arguments and figures in the body of that article. This report conveys only the direction of the criticism visible in its headline.
광고 문의 · 300×250Separately, headlines from late May and early June on the government’s first year in office list ‘KOSPI surpasses 8,000’ among its main achievements. Asia Economy reported that the Lee Jae-myung government marked its first anniversary by publishing a record of achievements that includes the KOSPI passing 8,000. Whether the government formally set 8,000 as a policy target has not been confirmed.
The October 22 sell-off
The KOSPI fell 201.89 points, or 3.52%, to close at 5,533.77 on October 22. According to Alpha Economy, the intraday low was 5,485.98, and the KOSDAQ also fell 3.62% to 764.10. All top market-cap stocks declined, including SK hynix down 5.49%, LG Energy Solution down 5.22% and Samsung Electronics down 4.03%.
Alpha Economy listed as backdrops worries over AI investment returns after Meta’s third-quarter free cash flow turned negative, a gap in buying support after SK hynix finished a 40 trillion won share buyback, profit-taking after a buy-side sidecar was triggered the previous day, and the Bank of Korea’s rate hold and tightening remarks. Flow figures differ slightly by outlet, with individuals net buying about 380 billion won and institutions net selling in the 460 billion won range, while foreign investor figures vary by report. None of these reports offers evidence that government policy was the direct cause.
The political exchange
People Power Party spokesperson Cho Yong-sul said in a statement on October 22 that the KOSPI, having lost the 6,000 level, risked sliding toward 5,000, and demanded measures for investor losses. According to the Korea Social Welfare Journal, the party criticized core figures of the ruling camp for talking about a ‘KOSPI 10,000 era’ and argued that encouraging leveraged investing and market-support efforts had heightened fears of forced liquidations and negative-equity accounts. It also cited President Lee Jae-myung’s remark at his 500th-day press conference that everything returns to its place.
The statement is an opposition claim, and how the government and ruling party responded could not be confirmed in this reporting. The crux of the dispute is that a figure the government touted as an achievement in a rising market becomes the yardstick for blame in a falling one. Debate is likely to continue inside and outside the market over policy predictability and whether setting index targets is appropriate.
