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2025-08-01 11:08:49
South Korea's stock market plunged over 3%, suffering its biggest drop in four months. 1. The Korea Composite Stock Price Index (KOSPI) plummeted 2.95% to 3150.23 points on Friday, falling over 3.7% at one point, its biggest single-day drop since April 7. The market was under pressure from both new US tariffs and revisions to South Korea's domestic tax code, resulting in net foreign sales of 365.6 billion won. 2. US President Trump signed an executive order imposing a 15% tariff on South Korean goods. While lower than the previously threatened 25%, it remains an increase from the current 10%. Meanwhile, the South Korean government plans to cancel several tax cuts, including those on corporate income and stock investment, raising questions about the solution to the "Korea Discount" issue. Kiwoom Securities analysts noted that this move could shake investor confidence in the government's commitment to reform. 3. In terms of sector performance, tech giants Samsung Electronics fell 1.54%, SK Hynix plummeted 5.12%, and battery manufacturer LG Energy Solution fell 1.5%. The steel sector was hit hard, with Posco Holdings plummeting 4.21%. The Korean won exchange rate also weakened, falling 0.46% to 1398.9 against the US dollar, and government bond yields rose across the board, indicating that market risk aversion was heating up. Among the 934 traded stocks, only 42 closed higher at one point, and the market showed a general decline.
