South Korean stocks tumbled Thursday as heightened market uncertainty weighed on investor sentiment ahead of the reinstatement of short selling and the rollout of reciprocal tariffs with the United States. The benchmark Korea Composite Stock Price Index (KOSPI) fell below the 2,600 threshold, while the tech-heavy Kosdaq dropped under 700 for the first time in three months.
As of 1:50 p.m. on Mar. 28, the KOSPI was down 1.95% from the previous session, trading at 2,556.29. It marked the first time the index had dipped below 2,600 on an intraday basis since Mar. 17. Foreign investors led the sell-off, offloading 544.2 billion won ($370 million) worth of shares, followed by institutional investors with net sales of 81.7 billion won (about $56 million).
“The domestic market is experiencing peak uncertainty, particularly with the president’s impeachment ruling imminent,” said an official at a local brokerage. “There’s a growing sentiment that ‘something big is coming next week.’”
The Kosdaq was also sharply lower, down 2% at 693.35. Foreign investors posted net sales of 126.4 billion won (around $86 million), while institutional investors sold off 21.6 billion won (roughly $15 million).
Lee Jae-won, a researcher at Shinhan Investment Corp., said the KOSPI was bracing for two key events next week — the return of short selling and the implementation of mutual tariffs — prompting a flight from risk assets.
Losses were concentrated in heavyweight tech stocks. Samsung Electronics declined 2.43% to 60,300 won, while SK hynix dropped 3.72% to 199,300 won. The sell-off followed overnight weakness in U.S. chipmakers, with Nvidia shedding 2.10% and Broadcom sliding 3.96%. Adding to the downward pressure was Microsoft’s decision to halt large-scale data center projects amid concerns over supply glut. Microsoft is the world’s second-largest cloud services provider.
Hyundai Motor, which recently announced a major investment in the United States, also came under pressure amid growing trade tensions. Shares slid 4% to 203,500 won.
Lee and fellow Shinhan researcher Cho Min-kyu noted that while Hyundai’s U.S. investment initially fueled a rally in auto stocks, part of those gains has been pared back on tariff-related concerns.
