14.11.202502:30:08UTC+00South Korean Shares Drop on Tech Slide

On Friday, the benchmark KOSPI index experienced a significant decline of 2.4%, settling at approximately 4,070. This sharp drop marks a reversal from the gains seen in previous sessions, driven by an intensifying global selloff in technology stocks and diminishing hopes for a Federal Reserve rate cut in December. The negative sentiment was exacerbated by heavy losses in prominent technology companies across the US and Asia. Investors continued to offload AI-related stocks after several sessions of valuation adjustments. Notable declines were seen in shares of Samsung Electronics (-3.6%), SK Hynix (-5.4%), LG Energy Solution (-2.4%), Hyundai Motor (-1.4%), Doosan Enerbility (-2.7%), and SK Square (-8.7%). Additionally, market sentiment was dampened by recent US economic data and Federal Reserve communications that reduced expectations for an imminent easing of monetary policy, leading investors to reduce their holdings across regional markets. The enduring weakness of the Korean won, coupled with heightened focus on foreign exchange stability, also contributed to a defensive stance among traders, amid concerns that ongoing outflow pressures and currency volatility could further destabilize the market.