Kospi Falls Below 7,500 as Foreign Selling Triggers 6% Plunge

On May 15, the Kospi rose above 8,000 for the first time shortly after the open, reaching an intraday record of 8,046.78, but reversed lower as foreign and institutional investors sold to take profits. The index closed at 7,493.18, down 6.12% from the previous session. The gap between the day’s high and low was reported as the largest on record, exceeding the volatility seen in early March after the U.S.-Iran war shock. Retail investors bought a net 7.2 trillion won, while foreigners sold 5.6 trillion won and institutions sold 1.7 trillion won. As expectations for rate hikes in major economies grew, foreigners reduced risk assets, especially recently surging semiconductor shares. Continued foreign net selling also pushed the won-dollar exchange rate above 1,500 won for the first time in 39 days. Source: rss.donga.com