South Korean stocks plunged on June 5, with the KOSPI index falling 453.32 points, or 5.25%, to close at 8,186.09, heading for its worst weekly drop since late March amid a global tech selloff and stalled US-Iran peace talks [1, 2].
The tech sector led losses as chipmakers Samsung Electronics and SK Hynix declined 5.41% and 8.27%, respectively, deepening pressure on the benchmark index [1]. Other major Korean firms also fell, with Hyundai Motor down 3.71%, Kia Corp down 3.53%, POSCO Holdings down 4.23%, and Samsung BioLogics dropping 1.48% [1].
Foreign investors were net sellers of Korean shares worth 2.912 trillion won during the period, intensifying market weakness [1]. The Korean won hit its lowest level against the US dollar since 2009, trading at 1,543.0 won per dollar on June 5, declining 0.7% on the day [1, 2].
Bond yields rose in response, with the three-year Korean Treasury bond yield increasing by 1.1 basis points to 3.865% [1]. Government officials, including Finance Minister Koo Yun-cheol, issued verbal warnings against speculative, one-way bets in the markets to curb volatility [1, 2].
The KOSPI index was down 3.46% for the week amid the combined effects of the global technology selloff and stalled US-Iran negotiations, which weighed on investor sentiment [1].
