FX.co ★ South Korean Shares Drop on Profit-Taking

The benchmark KOSPI dropped more than 2% to around 5,880 on Thursday, erasing the previous session’s sharp rally as investors took profits and losses in heavyweight stocks dragged down the index. LG Energy Solution (-8.34%), Hanwha Aerospace (-6.48%), and Samsung Electronics (-0.62%) led the declines, outweighing gains in SK Hynix (+3.83%) and SK Square (+3.26%). Sentiment was further pressured by Samsung Electronics’ latest results, with its semiconductor division posting an operating profit of 106.5 trillion won in the third quarter, below market expectations of 108.5 trillion won, cooling optimism over sustained AI-driven demand. Externally, the Federal Reserve left its benchmark interest rate unchanged at 3.75–4.00% in a 10–2 vote, keeping the interest rate gap with South Korea at up to 1 percentage point. On the domestic front, there were some encouraging signals: the Bank of Korea’s Composite Business Sentiment Index climbed 5.1 points to 104.2 in October, its highest level since August 2022.