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HONG KONG -- As in the rest of the world, Internet "concept stocks" in Hong Kong and Korea are probably kissing the era of free money good-bye. The worse news for more conventional investment targets is that in a region with few liquid stocks and so much borrowed money, the Old Economy stocks are getting massacred too.

With individuals and fund managers scrambling to raise money, or anticipating the need for it in the face of redemptions from mutual funds, everyone got hit. And because markets in non-Japan Asia are still small, a tide of foreign money leaving can have big effects. Korea may be the world's 11th largest economy, but its entire market cap is under $250 billion, a little less than half of

General Electric's

.

The over-the-counter, tech-heavy

Kosdaq

index is now 40.6% off its 52-week high, but the mainstream

Kospi

is not far behind.

Not only did Korea's largest Internet service provider,

Dacom

, lose 14.9%, but boring old

Samsung Fire and Marine Insurance

fell almost as much, down 13.7% to 23,300 won ($20.70). More predictably,

SK Telecom

(SKM) - Get SK Telecom Co. Ltd. Report

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fell 15%. The scary thing about this stock is that it's still trading at 108 times earnings.

The same goes for some of the most popular, nondot-com stocks in Hong Kong. Super-efficient logistics company

Li & Fung

has been a must-have stock because it uses the Internet to generate lots of cash as it sources materials for U.S. importers and oversees production processes across Asia for its clients. Li & Fung fell 16.6% today, but still trades at 60 times earnings.

Ditto for computer-maker

Legend

, a Chinese success story if there ever was one. Good company, but down 16.4% today. Its

price-to-earnings ratio before today's close was 277. Time was, a few weeks ago, that you couldn't hear a bad word about

China Telecom

(Hong Kong)

(CHL) - Get China Mobile Ltd. Report

, but it fell 14.9% today, to 51.50, and still trades at 94 times earnings.

Among the most keenly watched stocks on the day was

Pacific Century CyberWorks

, down 15%. It is in the process of trying to take over

Cable & Wireless HKT

(HKT)

by paying a good chunk of the bill with stock. C&W HKT fell 11.8% today, to 16.85. The deal may still happen, but how far down can Pacific Century's paper fall before the phone company's owners decide they want more cash and less stock?

The souring sentiment of investors for stocks backed primarily by a few big names was well summed up in the market debut of

Techpacific.com

, a Hong Kong-based Internet "incubator" modeled on

Softbank

of Japan. It fell 57% from its offering price on its first day of trading Monday, a price that had been cut back 24% last week when tech stocks were passing their peak.

With backers such as Henry Cornell, who heads up the

Goldman Sachs

private equity group in Asia, and Jack Wadsworth, who runs

Morgan Stanley

in Asia, not to mention Robert Owen, Hong Kong's former chief stock-market regulator, you couldn't have asked for much better credentials. Still, the stock was barely subscribed, and today was buried.