FX.co ★ KOSPI Declines Amid Foreign Selling and Policy Caution

On Friday, the benchmark KOSPI index fell by 0.4% to reach 3,447, retreating from the previous session's record high. This decline was primarily influenced by the selling activities of foreign investors and cautious signals emanating from the Bank of Korea. Approximately KRW 117 billion in shares were offloaded by overseas investors. In a statement, Bank of Korea Governor Rhee Chang-yong cautioned against swift rate reductions, emphasizing the importance of maintaining tighter monetary policy and citing demographic challenges that hinder aggressive easing. His comments indicated that the BOK is unlikely to swiftly follow the Federal Reserve's recent policy shift, dampening investor enthusiasm for local assets. On a global scale, sentiment remained largely positive, following the Federal Reserve's inaugural rate cut since 2024. This move ignited a rally on Wall Street and increased interest in Asian stocks, positioning the KOSPI for a fourth consecutive weekly gain. In terms of corporate performance, major companies saw declines, including Samsung Electronics (-0.8%), SK Hynix (-1%), LG Energy Solution (-1%), and Hyundai Motor (-2.1%).