KOSPI crashes over 6 pct on foreign sell-offs after achieving 8,000-point milestone
South Korean stocks plummeted more than 6 percent Friday, after briefly topping the historic 8,000-point landmark, as investors moved to cash out tech and other market heavyweights after a record-breaking rally amid lingering uncertainties over the Middle East crisis.
The benchmark Korea Composite Stock Price Index (KOSPI) plunged 488.23 points, or 6.12 percent, to close at 7,493.18, after rising as high as 8,046.78.
The KOSPI had started marginally lower but turned higher shortly after opening, soaring past the 8,000 plateau, taking a cue from overnight gains on Wall Street boosted by a sharp rise in artificial intelligence (AI)-related shares and a positive evaluation of the U.S.-China summit.
But shortly after the achievement, it started crashing, falling as low as 7,371.68, triggering a sell-side sidecar at around 1:28 p.m. It marked the first time the main bourse operator has issued a sell-side sidecar since April 2.
Trade volume was heavy at 878.7 million shares worth 57.8 trillion won (US$38.5 billion), with losers outnumbering winners 704 to 165.
Analysts said the index came under heavy selling pressure as investors, foreigners in particular, moved to take profits from large-cap semiconductor and technology shares, including Samsung Electronics and SK hynix, which had been the main driving force behind the KOSPI's recent rally.
Foreigners dumped 5.6 trillion won worth of local shares, continuing their selling spree for the seventh consecutive session, while institutions unloaded 1.7 trillion won. Retail investors purchased 7.2 trillion won.
Foreign news reports that U.S. President Donald Trump, who just wrapped up his three-day state visit to China, said he will not be much more patient with Tehran renewed concerns over the ongoing U.S.-Israeli war against Iran, which have been driving up global oil prices.
"The end of the first-quarter earnings season also fueled short-term profit-taking sentiment, as expectations for strong earnings appeared to have passed their peak," Lee Kyoung-min, an analyst at Daishin Securities, said.
Notably, market top-cap Samsung Electronics nosedived 8.61 percent to 270,500 won, with its labor union threatening to proceed with a major strike planned for next week, despite management's proposal to resume talks without preconditions.
Its chipmaking rival SK hynix slid 7.66 percent to 1.82 million won.
AI investment firm SK Square plunged 6.23 percent to 1.1 million won, and trading firm Samsung C&T plummeted 10.29 percent to 396,500 won.
Power plant manufacturer Doosan Enerbility contracted 5.38 percent to 110,800 won, and defense giant Hanwha Aerospace dipped 6.89 percent to 1.2 million won.
Leading battery maker LG Energy Solution slipped 5.66 percent to 417,000 won.
Electrical and auto shares also lost ground.
Samsung Electro-Mechanics lost 1.37 percent to 1.01 million won, and HD Hyundai Electric went down 6.95 percent to 1.18 million won.
Top automaker Hyundai Motor decreased 1.69 percent to 700,000 won, while its sister Kia slid 5.67 percent to 168,000 won.
Home appliances maker LG Electronics was among the few gainers, surging 10.83 percent to 240,500 won on expectations for its robotics business. Doosan Robotics also rallied 19.29 percent to 127,400 won.
The Korean won was quoted at 1,500.8 won against the U.S. dollar at 3:30 p.m., down 9.8 won from the previous session to reach its weakest level in over a month.
Bond prices, which move inversely to yields, closed sharply lower. The yield on three-year Treasurys added 11.2 basis points to 3.766 percent, while the return on the benchmark five-year government bonds gained 12.9 basis points to 4.016 percent.
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This story was originally published May 15, 2026 at 2:54 AM.