[Seoul Market Wrap] KOSPI Plunges 3.52% as Institutions Bleed Under $464.4 Million in Heavy Selling

Domestic Markets Tumble: Late-Session Selling Pressure Erases Intraday Gains

On the 22nd, South Korea's stock markets experienced a simultaneous decline, with both the KOSPI and KOSDAQ indices retreating. Following the previous day's sharp surge, profit-taking activities emerged, leading to an expansion of selling pressure, primarily in the electric and electronics sectors, as well as large-cap biotech and battery stocks. As a result, both markets reversed their trajectory, falling within a day.

According to the Korea Exchange, the KOSPI closed at 5,533.77, down 201.89 points (3.52%) from the previous trading day. The KOSDAQ ended at 764.10, a decrease of 28.66 points (3.62%). The won-dollar exchange rate concluded the weekly trading session at 1,324.2 won per dollar, a slight decline of 1.0 won from the previous day's close.

The KOSPI opened in the red, influenced by profit-taking activities following the index's short-term surge. During the trading session, despite the Bank of Korea's decision to maintain its key interest rate, concerns over AI investment profitability and geopolitical uncertainties persisted. This led to an expansion of institutional selling, particularly in the electric and electronics sectors.

Wall Street's Late-Session Selling Pressure Weighs on Korean Markets

Key sectors, including medical equipment and devices, chemicals, and electronics, witnessed notable declines, with respective drops of 4.7%, 4.5%, and 3.3%. Large-cap stocks took a hit, falling 3.7%, while mid and small-cap stocks declined by 1.7% and 1.2%, respectively.

In terms of market flow, institutions led the charge with a substantial net sell-off of ₩464 billion, while Foreign Investors and individuals countered with net purchases of ₩59 billion and ₩382 billion, respectively. Foreign investors exhibited a preference for general services, with a net acquisition of ₩119 billion, followed by transportation equipment and components at ₩54 billion, and metals at ₩31 billion.

The KOSDAQ index opened in the red, despite the previous day's strength in the U.S. Nasdaq, as large-cap biotech and secondary battery stocks faced simultaneous selling pressure from foreign and institutional investors, leading to an expanded decline. Across sectors, finance dipped 5.2%, machinery and equipment fell 5.0%, and non-metals declined 4.7%. Individuals remained net buyers, acquiring ₩221 billion, while Foreign Investors and institutions offloaded ₩122 billion and ₩100 billion, respectively.

Select Stocks Shine Amid Market Turbulence

In the midst of the market turmoil, Samsung E&A (028050) emerged as a standout performer, surging 16.14% on news of a 183.6% year-over-year increase in its third-quarter operating profit, which reached ₩500.6 billion.

Market Movers: A Recap of Today's Top Performers

• **LS Eco Energy (229640):** The company's stellar performance in the third quarter, with record-breaking revenue of $351.5 billion KRW and operating profit of $22.2 billion KRW, has propelled its stock price up by 9.96%. This marks a significant milestone for the company and has attracted late-session buying pressure.

• **Vinatech (126340):** A series of substantial supply contracts for supercapacitors, destined for data centers, has boosted the company's shares by 14.78%. The strong commercialization of their products has driven this impressive growth.

• **Hanwha M&S (0220W0):** News of an expanded public tender offer by CEO Kim Dong-Seon, increasing the volume from 16.06 million shares to 26.20 million shares, has resulted in a 3.90% gain. Investors are responding positively to this strategic move.

• **Cafe24 (042000):** As the first domestic commerce platform to implement the 'WebMCP' technology for AI agents, the company's shares surged by 7.76%. This innovative step has garnered attention and fueled expectations for future growth.

• **Kakao Games (293490):** With an expanded lineup of new game releases, the market is anticipating a turnaround to profitability by 2027. This positive outlook has driven a 7.30% increase in the company's stock price.

• **Youngwoo DSP (143540):** A recently announced $46 million KRW contract with Samsung Display's Vietnam subsidiary for display equipment has lifted the company's shares by 1.73%. This deal solidifies their position in the supply chain.

Market Wrap: Late-session Selling Pressure Erases Intraday Gains

### Market Movers

• **MS Bio (0013Y0):** The newly listed company on KOSDAQ ended the trading day with a surge of 70.77% above its IPO price of KRW 7,800.

• **SK Innovation (096770):** Profits were taken as the stock retreated 8.17% following a recent rally, with selling pressure mounting as investors locked in gains.

• **SK Hynix (000660):** Concerns over the profitability of AI infrastructure investments resurfaced, leading to a decline of 5.49%.

• **LIG D&A (079550):** The defense contractor's shares fell 3.11% as the company faces a two-year bidding disqualification from the Defense Acquisition Program Administration, creating uncertainty over future contracts.