South Korean share prices are likely to decline further in the coming week due to ongoing fears over a global credit crunch, sparked by troubles in the US subprime mortgage market, dealers said Friday.
They said investors are worried that the fallout from the crisis might undermine the production of goods and service in this country while investors have also had to contend with the global sell-off in equities as result. For the week to August 17, the benchmark KOSPI index shed 10.4 percent or 190.42 points to 1,638.07.
Concerns over the unwinding of yen carry trades, in which investors raise funds in lower-yielding currencies such as the yen to invest in higher-yielding assets, had also cast a long shadow over the markets.