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2025-08-01 13:18:28
South Korean stocks accelerated their decline in the afternoon as government tax hike plans severely impacted market confidence. 1. South Korean stocks fell sharply in the afternoon on Friday, with the Korea Composite Index (KOSPI) falling 3.7% to 3,125 points, its biggest single-day drop in nearly four months. The market generally attributed the plunge to the new government's announced tax increase plan, which proposes raising the top corporate tax rate to 25% and increasing the stock transaction tax from 0.15% to 0.2%. NH Investment Securities analysts noted that this fiscal policy shift significantly dampened investor sentiment. 2. The semiconductor, defense, and steel sectors were the hardest hit, with memory chip giant SK Hynix plummeting 5.5%, Posco falling 4.7%, and Hanwha Aerospace plummeting 6.5%. Market capital flows showed continued net selling by foreign and institutional investors, exacerbating the selling pressure. Analysts warned that the market is likely to remain volatile and downward until policy uncertainty is resolved, and investors should closely monitor subsequent government policy adjustments and changes in foreign capital flows.
