The benchmark Korea Composite Stock Price Index(KOSPI) lost 49-point-64 points, or one-point-62 percent on Friday, closing the week at three-thousand-19-point-18.

The tech-heavy KOSDAQ also fell 20-point-07 points, or two percent, to close at 983-point-20.

The sharp drop comes as the New York Stock Exchange tanked on Thursday with the Dow Jones Industrial Average dropping nearly one-point-six percent. This is despite the U.S. government averting a shutdown with a short-term spending bill passing the House and Senate. 

U.S. inflation concerns and extended social distancing curbs in Korea also fueled the drop. 

On the foreign exchange, the local currency weakened four-point-seven won against the dollar, ending Friday at one-thousand-188-point-seven won.