South Korea’s benchmark index drops sharply amid broad sell-off, while the won weakens to levels last seen in 2007.
South Korea’s KOSPI index fell 6% as the won slumped to a 17-year low against the USD, driven by a sell-off in tech heavyweights including Samsung Electronics and SK Hynix. Battery maker LG Energy Solution and automakers Hyundai Motor and Kia also declined, signaling broader market weakness.
The won’s drop to multi-year lows follows persistent pressure on Asian currencies, with Japan’s yen also testing 160 per USD. Analysts cite global risk aversion and regional economic concerns as key factors. South Korea’s foreign reserves data and intervention warnings from Tokyo have added to volatility.
Market reaction remained muted as traders awaited further cues from central bank policies and geopolitical developments. The sell-off reflects growing unease over export-dependent economies facing currency depreciation and slowing demand.