KOSPI Falls Below 8600, Won-Dollar Rate Surpasses 1530 Won

The KOSPI index dropped below the 8,600 mark, pressured by large-scale selling from foreign investors. The index began trading down more than 2% at 8,600, falling to 8,580 intraday. Although it attempted to recover, pushing towards the 8,700 level, it ultimately closed lower at 8,600. By sector, foreigners were net sellers of nearly 7 trillion won, dragging down the index, while retail investors and institutions bought simultaneously but were insufficient to defend against the decline. Shares of semiconductor giants Samsung Electronics fell to the 350,000 won range, and SK Hynix shares dropped more than 2%.

The weakness in the domestic stock market was attributed to a contraction in investor sentiment, driven by soaring international oil prices and rising sovereign bond yields amid heightened Middle Eastern tensions. Overnight, the three major US stock indices all declined on news of stalled peace talks and renewed military conflict between the US and Iran. Broadcom's downward revision of its AI revenue forecast also contributed to weakening semiconductor investment sentiment.

Conversely, the KOSDAQ index showed strength, rising more than 2%.

The won-dollar exchange rate, which opened at 1,530 won today, closed at 1,529.7 won, up 13.3 won from the previous trading day. Factors contributing to the rise included heightened tensions between the US and Iran overnight, as well as the US Trade Representative's announcement of a policy to impose an additional 12.5% tariff on South Korea. The won-dollar exchange rate has now remained above 1,500 won for 13 consecutive trading days since mid-last month.