The KOSPI tumbled 5.57 percent to close at 2,328.20 — its lowest level since November 2022 — while the tech-heavy KOSDAQ dropped 5.25 percent to 651.30.
Foreign investors led the rout, offloading roughly 3.3 trillion won in shares across both spot and futures markets, marking their largest single-day withdrawal since August 2021, according to data from the Korea Exchange.
“Global uncertainty around a tariff war has triggered continued panic selling by foreign investors, who are rushing to secure dollar cash positions,” said Kim Seok-hwan, an analyst at Mirae Asset Securities.
Investor anxiety surged, reflected in a 65 percent spike in the KOSPI 200 Volatility Index, or VKOSPI, which climbed to 44.23 — its highest reading since August of last year.
Shares of Samsung Electronics dropped 5.17 percent, SK Hynix plunged 9.55 percent, and Hyundai Motor declined 6.62 percent.
The South Korean won weakened significantly, falling 33.7 won to 1,467.8 per dollar in its sharpest one-day drop in nearly five years.
“Despite market panic and investor concerns, Trump and White House officials are maintaining a hard-line stance on imposing tariffs,” said Lee Kyung-min, an analyst at Daishin Securities.
“Federal Reserve Chair Jerome Powell’s statement that he would wait for more clarity before adjusting monetary policy also weakened market expectations for a rate cut.”
reporter
Kim Dong-young
davekim0807@ajupress.com
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