FX.co ★ South Korean Stocks Dip Ahead of New KOSPI Levy

The KOSPI index experienced a decline of 0.20% to around 3,918 per USD on Monday, continuing its downward trajectory due to notable weaknesses in key sectors such as producer manufacturing, consumer durables, and consumer non-durables. This downturn affected major large-cap stocks, including Samsung Electronics (-0.30%), Hyundai Motor (-2.87%), Doosan Enerbility (-1.70%), HD Hyundai Heavy Industries (-3.55%), Hanwha Aerospace (-2.93%), and Kia Corporation (-2.28%). Additionally, investors are preparing for the introduction of a new transaction tax of 0.05% on KOSPI trades, effective January 1. This levy, marking the first of its kind on the benchmark index, is anticipated to be a potential obstacle, as increased trading costs may reduce market liquidity and discourage short-term trading activity. Market sentiment was also negatively impacted by the Manufacturing PMI for November, which remained at 49.4, indicating a second consecutive month of contraction due to decreased output and new orders.