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      South Korean Stock Market Experiences Significant Decline Amid Foreign Sell-Off

      The Korea Composite Stock Price Index (KOSPI) experienced a sharp decline on October 20, falling by as much as 4.76% during trading and dropping below the 5,500-point mark. This downturn followed a brief rebound over the previous two days and has been attributed to rising U.S. Treasury yields and disappointing performance from a newly listed data center company.

      Foreign investors have significantly reduced their holdings in the South Korean stock market, net selling 636.7 billion Korean won. Institutional investors, including pension funds, also contributed to the sell-off, with a net sale of 467 billion Korean won. This included 241.8 billion won sold by financial investment institutions and 159 billion won by pension funds. In contrast, individual investors net purchased 838.8 billion won, while other legal entities net bought 261.6 billion won.

      Analyst Huh Jae-Hwan from Eugene Investment & Securities noted that the current selling trend appears indiscriminate, affecting nearly all stocks. The market's overall weakness is evident, particularly as battery manufacturers, which had previously led the market's rebound, also faced declines.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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