On the 9th, the Korean stock market was mercilessly crushed by U.S. President Donald Trump's mutual tariff bomb. The KOSPI index plummeted as soon as the mutual tariff took effect at 1:01 p.m., breaking below the 2,300 mark for the first time in 1 year and 5 months. The KOSDAQ index also fell by more than 2%, barely maintaining the 640 level.
On that day, the KOSPI index closed at 2,293.70, down 40.53 points (1.74%) compared to the previous trading day. The index opened at 2,329.99, down 4.24 points (0.18%) from the previous day and briefly rose in early trading. However, it fell to 2,284.72 after the mutual tariff took effect in the afternoon. This marks the first time the KOSPI index has dropped below the 2,300 level since Nov. 1, 2023 (2,288.64).
On that day, as the trade dispute between the U.S. and China intensified, foreign and institutional investors continued to sell, leading to a sell-off. Foreigners, who have recorded net selling for 9 consecutive transactions in the spot market and 10 consecutive transactions in the futures market, sold 1.5 trillion won, contributing to the index decline. Institutions also net sold 70.4 billion won. In contrast, individuals net purchased 939.6 billion won.
In the securities market, most large corporations turned on the 'blue light.' Samsung Electronics closed at 53,000 won, down 0.93%, while preferred shares of Samsung Electronics also declined by 0.67%. SK hynix closed at 165,000 won, down 2.65%.
Additionally, LG Energy Solution and Samsung Biologics saw their stock prices drop by 1.26% and 1.20% respectively. Hyundai Motor, Kia, Hanwha Aerospace, NAVER, and others also fell. Following news that the Trump administration would soon implement drug tariffs, Celltrion closed at 154,500 won, down 5.27%.
There were stocks that smiled even in the declining market. The sectors mentioned during President Trump's conversation with Acting President Han Duck-soo saw gains. POSCO INTERNATIONAL, engaged in LNG development, rose by 6.59% to close at 46,900 won, while the pipe manufacturing corporation NEXTEEL surged 26.08% to finish at 14,070 won.
On that day, the KOSDAQ index closed at 643.39, down 15.06 points (2.29%) compared to the previous trading day. The KOSDAQ index opened slightly lower at 653.84 but fell further in the afternoon. In the KOSDAQ market, foreign investors net sold 96.8 billion won, while individuals and institutions purchased 83.7 billion won and 19.3 billion won respectively.
Among the top 10 stocks by market capitalization in the KOSDAQ, Alteogen, ECOPRO BM, HLB, Ecopro, HUGEL, CLASSYS, Sam Chun Dang Pharm, and LigaChem Biosciences saw their stock prices decline. In contrast, Rainbow Robotics and Kolon TissueGene recorded gains.
The exchange rate of the won against the U.S. dollar (won-dollar exchange rate) is on the verge of entering the 1,500 won range for the first time since the financial crisis. As of 3:30 p.m. in the Seoul foreign exchange market, the won-dollar exchange rate was 1,484.1 won, up 10.9 won from the previous day. This is the highest level since March 12, 2009 (1,496.5 won) during the financial crisis, about 16 years ago.