Capital Outflows Trigger Sharp Swings in South Korean Stock Market

Deep News05-18 21:20

Foreign investors offloaded $13 billion worth of South Korean stocks, abruptly halting a prior rally and triggering the market's volatility control mechanism. Leading the decline were chip giants Samsung Electronics and SK Hynix, dragging the KOSPI index down by over 4% at one point during the session. The primary drivers behind the substantial foreign capital outflow are expectations of tightening global liquidity and the sustained weakening of the Korean won against the U.S. dollar. South Korea's Financial Services Commission stated it would closely monitor market conditions and implement stabilizing measures if necessary. Despite the semiconductor sector's strong fundamentals, investor concerns over excessive valuations and export prospects are intensifying.

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