The KOSPI index witnessed a decline of 1.86%, settling at approximately 3,406 on Friday, marking its third consecutive session in the negative, largely driven by the downturn in large-cap stocks. This decline is attributed to mounting apprehensions surrounding ongoing and unresolved tariff negotiations with the United States. Market participants remained cautious as discussions over a potential $350 billion investment and trade agreement have stalled, showing no significant advancement. Key stocks suffering losses included SK Hynix, which fell by 4.49%, LG Energy Solution with a 2.90% decrease, and Samsung Electronics, declining by 2.44%.
In terms of currency and policy developments, the government revealed strategies to implement 24-hour foreign exchange trading alongside an offshore won settlement system. These initiatives aim to enhance foreign investor accessibility and bolster South Korea’s aspiration for MSCI developed market classification. Presently, the won is traded only until 2 a.m., which restricts participation from US investors. While these reforms are perceived as strides toward increased international integration, they introduce potential short-term uncertainties and volatility within the currency market.
