KOSPI Plummets Below 3,900 During Trading as Foreign Investors Sell Off... Drops 6% [fn Morning Market Report]

[Financial News] The Korea Composite Stock Price Index (KOSPI) tumbled by more than 200 points due to heavy selling by foreign investors, briefly falling below the 3,900 mark during intraday trading. As KOSPI plunged, a sidecar—temporary suspension of program sell orders—was triggered.
According to the Korea Exchange (KRX), as of 10:40 a.m. on the 5th, KOSPI was trading at 3,874.59, down 247.15 points (-6.00%) from the previous session.
KOSPI opened at 4,055.47, down 1.61% from the previous trading day, and extended its losses, dropping as low as 3,867.81 (-6.16%).
Due to the sharp decline in KOSPI, KRX triggered a sell-side sidecar at around 9:46 a.m. The sidecar is activated when KOSPI 200 Index Futures (nearest month) fall by more than 5% and remain at that level for one minute. This is the first time in about seven months since a similar drop caused by tariff shocks on April 7.
Foreign investors are leading the market decline today. In the KOSPI Market, foreign investors have net sold 1.1598 trillion won, while individuals and institutions have net purchased 793.7 billion won and 466.4 billion won, respectively.
Except for telecommunications (up 0.25%), all industry sectors are in decline. Machinery and equipment (-8.10%), electrical and electronics (-5.90%), and transportation equipment and parts (-5.61%) are among the weakest performers.
Major large-cap stocks that have driven the recent KOSPI rally, including semiconductor giants, automakers, defense, and shipbuilding companies, are also falling. Among the top 10 stocks by market capitalization, all except KB Financial Group (up 0.16%) are down, including Samsung Electronics (-4.10%), SK hynix (-4.35%), and Doosan Enerbility (-6.70%).
KOSDAQ also plunged today, triggering a sidecar for the first time in about 15 months. At around 10:26 a.m., KRX temporarily suspended program sell orders for five minutes due to fluctuations in KOSDAQ 150 Futures and the spot index.
As of 10:40 a.m., KOSDAQ was trading at 872.12, down 54.45 points (-5.87%) from the previous session. Individuals have purchased 549.7 billion won, while foreign investors and institutions have sold 495.8 billion won and 22 billion won, respectively.


koreanbae@fnnews.com Bae Han-geul Reporter