[Closing Market] KOSPI Plunges 3.12% to Break the 6,700 Level
The domestic stock market drew a steep downward curve on Aug. 24 as external negative factors, namely the surge in U.S. Treasury yields and the intensification of the tariff war, hit simultaneously. The KOSPI plunged more than 3% amid the simultaneous weakness of large semiconductor and financial st
On August 24, South Korea's KOSPI stock market experienced a significant drop, plunging 3.12% to reach the 6,700 level. The decline was attributed to external factors, including rising U.S. Treasury yields and intensifying trade tensions. Large semiconductor and financial stocks suffered heavy losses, contributing to the market's weakness.
The KOSDAQ index, however, showed mixed results, closing higher due to the rebound of secondary battery stocks. By the end of the trading day, the KOSPI index closed at 6,696.96, down 215.99 points (3.12%) from the previous day's close. In contrast, the KOSDAQ index ended at 813.33, up 11.39 points (1.42%) from the prior session.
The market instability was largely driven by global macroeconomic conditions, with the 10-year U.S. Treasury yield nearing 5% and international oil prices surging for six consecutive days, adding to inflation concerns. Investors became increasingly cautious, closely monitoring key economic indicators like the Personal Consumption Expenditures (PCE) price index and the Jackson Hole meeting messages.
In the KOSPI market, retail investors managed to absorb the heavy selling pressure from institutions and foreigners, net buying 3.84 trillion won worth of stocks. Conversely, foreigners and institutions sold a combined 5,562.3 billion won worth of stocks, exacerbating the decline. The situation was different in the KOSDAQ market, where foreign and institutional investors net bought 351.7 billion won and 26.2 billion won, respectively, while retail investors net sold 347.2 billion won.
Among the largest KOSPI-listed companies, Samsung Electronics and SK hynix suffered notable declines of 8.79% and 2.95%, respectively, while corporate governance-related stocks such as Samsung Life Insurance plummeted 12.63%. In contrast, the KOSDAQ market exhibited strength in sectors such as finance, telecommunications, medical and precision equipment, and pharmaceuticals, with secondary battery stocks like EcoPro BM and EcoPro surging 10.80% and 7.59%, respectively.
Despite the market turmoil, the won/dollar exchange rate remained relatively stable, closing at 1,382.4 won, down 4.1 won from the previous trading day.
Written by urgent.news from BusinessKorea's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
