South Korean Stocks Drop Sharply Amid Foreign Selling
SEOUL, June 23 – South Korean stock markets experienced a significant downturn on Tuesday, falling nearly 10% as foreign investors sold off major semiconductor stocks and other key shares, following losses in U.S. tech markets. The nation’s currency also weakened against the U.S. dollar.
The Korea Composite Stock Price Index (KOSPI) saw a steep decline of 910.71 points, dropping 9.99% to settle at 8,203.84. During the day, it reached a high of 9,175.45 before the downward trend took hold.
To address the rapid decline, the Korea Exchange (KRX) triggered a circuit breaker around 2:33 p.m., halting all trading for 20 minutes after the KOSPI fell more than 8% from the previous day’s close. This was the fourth time in 2026 that the KRX has implemented this type of trading halt.
In the U.S., while there were positive developments regarding negotiations with Iran, with Vice President JD Vance noting a “very good foundation,” the stock market closed on mixed terms. The technology-heavy Nasdaq Composite dropped by 1.3%, raising concerns about major tech companies.
Furthermore, shares of SpaceX plunged over 16% after news broke that the company is seeking to raise funds through bonds to support its artificial intelligence efforts.
As of 3:30 p.m., the exchange rate for the Korean won stood at 1,539.1 won per U.S. dollar, a decline of 2.1 won from the previous session.
This significant downturn reflects ongoing volatility in the global and local markets, highlighting the current economic challenges faced by investors.
