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Kospi plummets 3.81% on foreigner selling over dwindling rate cut hopes

Published: 14 Nov. 2025, 17:25

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 4,011.57 points on Nov. 14, down 159.06 points, or 3.81 percent, from the previous session. [YONHAP]

Korean stocks plunged nearly 4 percent Friday, snapping a four-day winning streak, as dwindling hopes for a near-term rate cut prompted a selling spree. The Korean won rose sharply against the U.S. dollar.

The Kospi sank 159.06 points, or 3.81 percent, to 4,011.57.

Trade volume was moderate at 396.5 million shares worth 17.9 trillion won ($12.3 billion). Losers outnumbered winners 717 to 169.

Foreigners and institutional investors were net sellers, each offloading 2.4 trillion won and 900.2 billion won worth of shares, respectively. In contrast, retail investors turned net buyers after four consecutive sessions of selling, snapping up 3.2 trillion won.

"Changes in rate cut expectations weighed down on stocks and the tech sector. Stock markets globally are facing downward pressure, especially over concerns that the artificial intelligence (AI) sector may be in a bubble," said Lee Kyoung-min, an analyst at Daishin Securities.

Recent comments from U.S. Fed board members signaling a hawkish stance on prospects for a December rate cut also fueled risk-averse sentiment, Lee added.

The stock market fell despite South Korea and the United States having announced a joint fact sheet on the countries' trade deal reached over the two weeks since a summit meeting in the southeastern city of Gyeongju.

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 4,011.57 points on Nov. 14, down 159.06 points, or 3.81 percent, from the previous session. [YONHAP]

The U.S. has agreed to lower tariffs on Korean cars and auto parts from 25 percent to 15 percent and set semiconductor tariff rates "no less favorable" than those applied to Korea's competitors, such as Taiwan.

Seoul and Washington also signed a memorandum of understanding on Seoul's $350 billion investment pledge, which includes $150 billion into America's shipbuilding sector.

In Seoul, most large-cap shares lost ground.

Market bellwether Samsung Electronics shed 5.45 percent to 97,200 won, while its chipmaking rival SK hynix dipped 8.5 percent to 560,000 won.

Battery maker LG Energy Solution fell 4.44 percent to 463,000 won, automotive giant Hyundai Motor shed 2.15 percent to 272,000 won and major portal operator Naver moved down 4.52 percent to 253,500 won.

Shipbuilder HD Hyundai Heavy Industries was among the few winners, rising 3.17 percent to 586,000 won, as investors anticipated further shipbuilding partnerships with the U.S.

The local currency was quoted at 1,457 won against the greenback as of 3:30 p.m., down 0.63 percent from the previous session's quote of 1,465.70 won.

The Korean won rebounded from near its lowest level in 16 years, after authorities pledged to devise measures to stabilize the foreign exchange market.

Bond prices, which move inversely to yields, ended lower. The yield on three-year Treasurys rose 1.2 basis points to 2.944 percent, and the return on the benchmark five-year government bonds jumped 4.2 basis points to 3.126 percent.

Yonhap