FX.co ★ South Korea Shares Slip Amid Reform Resistance, Global Uncertainty

The KOSPI index fell by 1.3%, settling around 2,880 on Friday, retreating from a three-year peak achieved the previous day. This downturn was driven by profit-taking and investor caution, despite the optimistic sentiment surrounding President Lee Jae-myung's proposed reforms. These reforms, which include cuts to dividend taxes, stricter trading regulations, and enhanced corporate governance, initially attracted foreign investments earlier in the week. However, concerns about political resistance and opposition from influential conglomerates have tempered the rally. Additionally, the lack of substantial progress in US-China trade discussions has dampened investor sentiment. In the corporate sector, tech and automotive stocks led the losses, with declines in Samsung Electronics (-1.6%), LG Energy Solution (-3.0%), Hyundai Motor (-1.8%), Hanwha Aerospace (-1.2%), and KB Financial Group (-0.7%). Analysts view this decline as a standard correction following recent market highs, with future movements likely dependent on the advancement of reforms and global economic indicators.