KOSPI Plummets 6.37 Percent Amid Tech Rout and US Strikes

The Korea Composite Stock Price Index (KOSPI) fell 6.37 percent to close at 6,820.60 on Thursday, marking a sharp reversal just one day after the index had regained the 7,000-point threshold. The rout, termed Black Thursday, saw the index drop as much as 7.6 percent intraday, triggering a 20-minute sell-side sidecar by the Korea Exchange after a 5 percent decline.

Market volatility was driven by a steep plunge in semiconductor heavyweights, with SK hynix shares sinking 11.53 percent and Samsung Electronics falling 8.77 percent. The sell-off followed reports from Morgan Stanley regarding delays in data-center projects and increased competition from China's ChangXin Memory Technologies, which began taking orders for an $8.55 billion IPO. Geopolitical instability further pressured investors after the United States launched military strikes on Iran, raising fears of energy supply disruptions.

Adding to the pressure, the Bank of Korea raised its benchmark interest rate by 0.25 percentage point to 2.75 percent to combat inflation, the first such increase in three and a half years. Foreign and institutional investors sold a combined net total of approximately 2.83 trillion won, while retail investors bought 2.78 trillion won. The KOSDAQ also declined 4.53 percent to end at 791.84, though the Korean won rose against the US dollar despite the market crash.