SEOUL, March 18 (Xinhua) -- South Korean stocks plunged 4.9 percent on Wednesday amid fears that the COVID-19 outbreak across the world may drive the global economy into a recession.

The benchmark Korea Composite Stock Price Index (KOSPI) plummeted 81.24 points, or 4.86 percent, to settle at 1,591.20. Trading volume stood at 714 million shares worth 9.4 trillion won (7.5 billion U.S. dollars).

It was the lowest close in almost 10 years since May 2010. Unease over the coronavirus spread to Europe and the United States fueled risk-off sentiment despite stimulus packages and accommodative monetary policies from major economies.

The U.S. Federal Reserve cut its benchmark interest rate by a full percentage point to a range between zero and 0.25 percent on Sunday, pledging to buy 700 billion dollars of government and mortgage bonds.

The Bank of Korea (BOK) slashed its target rate by half a percentage point to an all-time low of 0.75 percent on Monday in its first emergency move since the 2008 global financial crisis.

South Korea's parliament passed 11.7 trillion won (9.4 billion U.S. dollars) worth of extra budget bill on Tuesday to counter the economic fallout from the virus outbreak.

The number of infected patients here topped 8,400, but the daily caseload has steadied in recent days.

Market watchers said the rising number of COVID-19 cases in Europe and the United States triggered fear of the global economic slump especially among foreign investors in the local stock market.

Foreigners dumped domestic shares for the 10th consecutive session, while local financial institutions joined in the selling spree.

For the past 10 trading days, foreign sale of local stocks totaled over 8 trillion won (6.4 billion U.S. dollars).

Large-cap shares lost ground. Market bellwether Samsung Electronics declined 3.6 percent, and memory chip giant SK Hynix nosedived 9.1 percent. The biggest automaker Hyundai Motor dropped 8.2 percent, and the most-used search engine Naver retreated 3.3 percent.

Samsung BioLogics, the biopharmaceutical unit of Samsung Group, diminished 4.1 percent, and leading chemical firm LG Chem plummeted 8.7 percent.

The small-cap KOSDAQ declined 29.59 points, or 5.75 percent, to 485.14, marking the lowest close in more than six years since December 2013.

The local currency depreciated versus the dollar as local stocks continued to slide sharply. The won/dollar exchange rate gained 2.2 won to finish at 1,245.7 won per dollar, the highest in nearly 10 years since June 2010.

Bond prices ended lower as foreigners reduced holdings of emerging market assets.

Yields on the liquid three-year treasury notes added 2.0 basis points to 1.050 percent, and the return on the 10-year government bonds advanced 6.1 basis points to 1.502 percent.