The KOSPI index plummeted by a staggering 8.8%, prompting automatic trading halts. Samsung Electronics and SK Hynix suffered significant losses, dipping more than 10%.
The KOSPI index in South Korea suffered a sharp decline of nearly 9% on Monday, triggering circuit breakers as investors' expectations for a Federal Reserve interest rate increase surged following strong US job numbers. This triggered a wave of selling in tech-heavy stocks that had driven the AI sector's recent rally.
Related ↗IDR survey reveals UK pay settlements remain steady at 3.5% for a second consecutive month.South Korea's KOSPI index plummeted nearly 9 percent at the start of trading, with tech giants Samsung Electronics and SK Hynix leading the decline, both losing over 10 percent in value.
Chipmakers' dominance has fueled KOSPI's remarkable growth, driven by unprecedented earnings. This year, their market values have skyrocketed by 150% and 200%, catapulting them to a combined value of over half of the index and entering the exclusive $1 trillion club.
Read next ↗Gulf region stock markets decline sharply today suddenly.Trading on the KOSPI halted abruptly at 0003 GMT, marking a sudden pause that lasted 20 minutes - a rare occurrence in recent months. This marked the ninth instance of circuit breakers being triggered since records began.
The KOSPI's decline is temporarily halted by a "sidecar" trading restriction, reducing its loss to 5.9% at 0448 GMT.
South Korea's currency, the won, surged by a modest 0.7% to reach 1,548.9 per dollar on this day, following a sharp decline of nearly 9% from its previous value of 1,615.0 set just last Friday.
Market analysts are closely watching developments as foreign exchange officials reiterate their cautionary stance on Monday, fueling speculation that authorities may be actively intervening in currency markets to mitigate the won's decline. The crucial threshold of 1,550 is expected to come under intense scrutiny.
On Friday's torrid session on Wall Street, stocks plummeted as investors reacted to concerns about the Federal Reserve. The Nasdaq index dropped a significant 4.2%, its value diminished by strong payrolls data that eliminated any possibility of further interest rate cuts. Meanwhile, the Philadelphia Semiconductor Index lost 10% and the iShares MSCI South Korea ETF tumbled 14%.
A sudden shift in US job numbers sparked a sharp increase in bond yields, offering a convenient catalyst for a market correction that had been overdue due to prolonged semiconductor-driven inflationary pressures.
Market fluctuations are a given, yet it seems improbable that the downturn will persist indefinitely, considering the KOSPI's valuation concerns have eased somewhat following the correction and semiconductor stock earnings continue to show strong growth.
President Lee Jae Myung made remarks at a press conference on Monday, coinciding with his first year in office. Since assuming power in June 2025, he has implemented various policies to revitalize the domestic stock market, which he believes remains significantly underpriced.
The recent exchange rate fluctuations are considered a short-term anomaly by Lee, who attributes them mainly to foreign investors offloading domestic shares for portfolio adjustments.
SK Hynix, a leading provider of advanced chips to Nvidia, mitigated losses by 3.8% following remarks from Nvidia's CEO, Jensen Huang. He emphasized the company's significant partnership with SK Hynix during his visit to South Korea, where new deals were announced.
Naver, the e-commerce giant listed as 035420.KS, bucked the trend of its peers in the KOSPI index, surging by 14.1% after securing a major partnership with Nvidia.
Investors from abroad dumped a total of $773.89 million in South Korean stocks, marking the 21st straight day of selling pressure.
Monday's market downturn notwithstanding, the KOSPI has surged a remarkable 83% so far this year. Its standout performance in 2025 saw it soar by 76%, marking its largest increase since 1999 and outpacing other major global indices.
The exchange rate is $1 for every 1,552.1000 Korean won.
SK Hynix, a leading provider of advanced chips to Nvidia,mitigated losses by 3.8%following remarks from Nvidia's CEO, Jensen Huang. He emphasized the company's significant partnership with SK Hynix during his visit to South Korea, where new deals were announced.
Naver, the e-commerce(035420.KS)listed as 035420.KS, bucked the trend of its peers in the KOSPI index, surging by 14.1% after securing a major partnership with Nvidia.
