South Korea's KOSPI Index Plunged as Much as 4.76% Intraday on Joint Sell-Off by Foreign Institutional Investors

After two consecutive days of rebounds that briefly appeared to signal a market bottom, the Korea Composite Stock Price Index (KOSPI) staged another sharp decline, falling as much as 4.76% intraday and breaking below the 5500 level. Driven by rising U.S. Treasury yields and the weak debut performance of a data center enterprise on its first trading day, foreign investors have been reducing their holdings of South Korean stocks. Institutional investors including pension funds have also joined the sell-off, creating significant downward pressure on the market. As of press time, foreign investors recorded a net sell of 636.7 billion won on South Korea's securities market. Institutional investors also posted a net sell of 467 billion won, of which financial investment institutions accounted for 241.8 billion won in net sales, and pension funds accounted for 159 billion won in net sales. Retail investors and other corporate entities recorded net buys of 838.8 billion won and 261.6 billion won respectively, attempting to prop up the index and limit further declines.

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