South Korean stocks took a big hit on Friday, dropping more than 2 percent and dipping below the 3,400-point mark for the first time in 10 trading sessions. The slide came amid rising worries over U.S. tariffs and fading expectations for Federal Reserve interest rate cuts.
The won currency also weakened sharply, falling past the 1,410 level against the U.S. dollar for the first time in over four months. Investors fled to safer options like the dollar, pushing the exchange rate to 1,412.4 won per dollar by 3:30 p.m.—the weakest since mid-May.
The main KOSPI index plunged 85.06 points, or 2.45 percent, to end at 3,386.05. That’s the lowest close since September 12, when it finished at 3,395.54. Trading stayed moderate, with 389 million shares changing hands for about 12.2 trillion won, or roughly $8.63 billion. Sellers dominated, as 776 stocks fell compared to just 121 that rose.
Foreign investors sold off a net 661.1 billion won in shares, while institutions dumped 489 billion won worth. On the flip side, individual retail investors scooped up a net 1.1 trillion won, trying to stem the losses.
Analysts blame much of the downturn on U.S. President Donald Trump’s recent remarks, where he called South Korea’s planned $350 billion investment “just up front money.” That comment sowed doubts about the Korea-U.S. trade deal struck in August, especially with trade talks showing no real progress.
Adding to the pressure, stronger-than-expected U.S. economic growth has cooled hopes for quick rate cuts from the Federal Reserve. “Investors are jittery about these trade tensions and the lack of movement in negotiations,” said Lee Jae-won, an analyst at Shinhan Securities Co.
Most sectors finished in the red. Tech giant Samsung Electronics dropped 3.25 percent to 83,300 won, while chipmaker SK hynix tumbled 5.61 percent to 336,500 won. Carmaker Hyundai Motor fell 1.15 percent to 214,500 won, and its parts unit Hyundai Mobis slid 1.99 percent to 295,000 won.
Drug companies showed mixed results after the U.S. announced 100 percent tariffs on imported branded medicines. Samsung Biologics declined 2.15 percent to 1 million won, but Celltrion barely budged, up 0.06 percent to 178,000 won.
Defense firm Hanwha Aerospace eased 0.38 percent to 1.04 million won, and food leader CJ Cheiljedang dipped 1.5 percent to 230,500 won. Tech platform Kakao plunged 6.17 percent to 59,300 won, hit by user backlash over a recent update to its popular KakaoTalk messaging app.
Overall, escalating U.S.-South Korea trade concerns and shifting global economic signals rattled markets, leaving investors on edge for what’s next.
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