Korean Stocks Crash on Black Monday

Bourses around the world tumbled on Monday as the U.S. stock market crashed.

The Korea Composite Stock Price Index fell 3.52 percent on Monday to 2,504.51 points, the lowest in a year and seven months, while the junior Kosdaq closed down 4.72 percent to 828.77 points.

U.S. stocks and bonds plummeted after the U.S.' May inflation rate hit a higher-than-expected 8.6 percent last week, sending shockwaves through Asian financial markets on Monday, when Japan's Nikkei Index dropped 3.01 percent and Hong Kong's Hang Seng Index 3.39 percent.

The won also nosedived against the dollar, which is still considered a safe asset. The won fell to W1,288.90 per dollar at one point in trading but closed at W1,284, as a result of verbal intervention from the Finance Ministry and the Bank of Korea.