Economy

Seoul shares down over 5% late Wednesday morning on tech losses

Seoul shares traded more than 5 percent lower late Wednesday morning as investors dumped technology shares amid rising bond yields and continued geopolitical tensions in the Middle East. After opening 4.96 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) extended its losses, declining 378.03 points, or 5.5 percent, to 6,491.8 as of 11:20 a.m. Shortly after the opening bell, program trading for the KOSPI-listed shares was suspended for five minutes, as the Korea Exchange (KRX) activated a sell-side sidecar. A sell-side sidecar is triggered when the KOSPI 200 Futures Index falls 5 percent or more for at least one minute. Overnight, Wall Street's major indexes closed lower, as stalled peace efforts between the United States and Iran weighed on investor sentiment and pushed oil prices higher. The U.S. 30-year Treasury yield rose to its highest level since 2007 amid concerns that elevated energy prices could keep inflation high. In Seoul, chipmakers dragged down the broader market. Market bellwether Samsung Electronics dipped 7.08 percent, and its chipmaking rival SK hynix

Aug 19, 2026By Yonhap

Seoul shares down over 5% late Wednesday morning on tech losses

Economy

KOSPI falls as high US Treasury yields overshadow AI optimism

The KOSPI ended lower Tuesday, as heavy institutional selling and renewed concerns over high U.S. Treasury yields erased a chip-driven rally. According to the Korea Exchange, the benchmark KOSPI closed at 6,869.83, down 1.55 percent from the previous session. The index opened 2.15 percent higher and briefly surpassed the 7,200 mark on optimism over artificial intelligence (AI) and semiconductor stocks, but gave up all of its gains and fell below 7,000 amid heavy institutional selling. Foreign and retail investors net purchased 86.5 billion won ($61.21 million) and 731 billion won, respectively. Institutional investors dumped 785.4 billion won. SK hynix rose 1.03 percent to close at 1,662,000 won, while Samsung Electronics lost 2.19 percent to finish at 268,500 won. U.S. stocks closed lower overnight, with all three major indexes falling amid heightened geopolitical tensions between Iran and the U.S. and a surge in the benchmark 10-year U.S. Treasury yield to 4.726 percent. While the Dow Jones and Nasdaq indexes declined, the Philadelphia Semiconductor Index gained 1.6 percent after Anthro

Aug 18, 2026By Lee Yeon-woo

KOSPI falls as high US Treasury yields overshadow AI optimism

Economy

Inter-Korean stocks soar on hopes for renewed US-North Korea talks

Shares linked to inter-Korean economic cooperation skyrocketed, Tuesday, as U.S. President Donald Trump said North Korean leader Kim Jong-un had responded to his proposal for talks, according to the Korea Exchange. Good People soared 30 percent to close at 429 won ($0.31), hitting the daily price ceiling. Codes Combine and In the F also surged 30 percent and 29.81 percent, respectively, to close at 3,510 won and 2,395 won. Good People and In the F are considered inter-Korean cooperation stocks due to their past operations in the Gaeseong Industrial Complex. Codes Combine is also included because its largest shareholder previously operated there. Launched in 2004, the Gaeseong Industrial Complex was a jointly operated economic zone in North Korea, largely financed by South Korea to promote inter-Korean cooperation. In February 2016, the Park Geun-hye administration shut down the complex, citing concerns that funds generated there could be diverted to finance North Korea's weapons programs. Seen as a barometer of inter-Korean relations, shares of South Korean companies with ties to the Gae

Aug 18, 2026By Lee Yeon-woo

Inter-Korean stocks soar on hopes for renewed US-North Korea talks

Economy

Main stock market's turnover falls to year-to-date low in August

Turnover of Korea's main bourse hit the lowest level so far this year in August, after a sharp plunge in the stock market in July, data showed Tuesday. The average daily turnover of the Korea Composite Stock Price Index (KOSPI) stood at slightly over 25.7 trillion won ($18.2 billion) this month, according to the data from the Korea Exchange. It was the lowest tally since January this year, when the daily turnover came to 27 trillion won. The figure jumped to over 50 trillion won both in May and June, when the KOSPI enjoyed its bull run. Since July's record downturn, the average daily turnover fell to 36.8 trillion won last month. "In the first half of 2026, the trading value of the local stock market was unusually overheated," Kim Seok-hwan, an analyst at Mirae Asset Securities, said. Kim said the recent tumble in the daily turnover was the normalization of stock transactions that had increased excessively.

Aug 18, 2026By Yonhap

Main stock market's turnover falls to year-to-date low in August

Policy

Young Koreans lose trust in Lee government's economic policies

A 33-year-old office worker in northeastern Seoul's Dongdaemun District surnamed Park has been using an individual savings account (ISA) for long-term investments, mainly in overseas stocks. But uncertainty over recent changes to the account has left her unsure about how to manage her money. "I saw reports in early August saying the rules would change to limit investment in overseas stocks, and then I saw that the plan was being reconsidered. It’s confusing to keep up with the news," she said. "The problem is not just about the changing rules, but that it is becoming harder to make long-term financial plans when policy directions shift so quickly." Another office worker in her 30s, surnamed Lee, said she felt frustrated by the government's housing policies. "Several housing policies have been announced recently, but none of them have really helped me. My goal is to buy an apartment within five years, but loan restrictions make that goal feel out of reach," Lee said. Their frustration reflects a broader sentiment among some young Koreans that government policies meant to help them save,

Aug 18, 2026By Lee Hyo-jin

Young Koreans lose trust in Lee government's economic policies

Others

Retail investors return to gold market as prices rebound

Individual investors in Korea are returning to the gold market after selling for three consecutive months, as prices have rebounded from a steep correction following their record highs. According to the Korea Exchange (KRX) on Tuesday, individuals net bought 133 billion won ($94 million) worth of gold on the KRX Gold Market between Aug. 1 and last Friday. The buying turnaround contrasts sharply with the selling trend that persisted through last month. Retail investors offloaded about 524 billion won worth of gold from May through July, including 125 billion won in May, 348 billion won in June and 51 billion won in July, before reversing course in August. Over the same period, individual investors also stepped up their purchases of gold-related exchange-traded funds (ETFs). Investors are piling back into gold following a swift rally in international prices after a prolonged decline, driven by cooling U.S. inflation data and renewed expectations for Federal Reserve policy easing. Gold futures on the New York Mercantile Exchange hit a record closing high of $5,354.80 per ounce on Jan. 29 bef

Aug 18, 2026By Jun Ji-hye

Retail investors return to gold market as prices rebound

Economy

Container shipping costs to Middle East continue rising in July amid conflict

Container shipping costs from Korea to the Middle East continued rising in July, the customs agency said Tuesday, amid protracted geopolitical tensions in the region. The average shipping charge for a 40-foot container from Korea to the Middle East rose 14.5 percent from a month earlier to 8.78 million won ($6,217) in June, according to data from the Korea Customs Service. The reading has been rising since March. The average shipping charge for containers bound for the U.S. west coast rose 11.1 percent from a month earlier to 8.56 million won, while that for the east coast increased 14.4 percent to 8.14 million won. Shipping costs to the European Union jumped 36.4 percent to 5.68 million won. The figures include freight rates, commissions and other charges reported by local exporters, according to the agency.

Aug 18, 2026By Yonhap

Container shipping costs to Middle East continue rising in July amid conflict

Economy

Seoul shares trim earlier gains late Tuesday morning as investors lock in gains

Seoul shares trimmed earlier gains late Tuesday morning on profit-taking amid fading hopes for a deal to end the war between the United States and Iran. After opening 2 percent higher, the benchmark Korea Composite Stock Price Index (KOSPI) pared its gains to trade 48.32 points, or 0.69 percent, higher at 7,026.26 as of 11:20 a.m. Retail investors and institutions sold a net 804.7 billion won (US$570 million) and 219.9 billion won worth of stocks, respectively, while foreigners bought a net 1.07 trillion won. Overnight, the Dow Jones Industrial Average shed 0.51 percent, while the tech-heavy Nasdaq composite declined 0.32 percent. Elevated oil prices stoked inflation concerns, while prospects for a deal with Iran dimmed after U.S. President Donald Trump said he was not interested in extending an agreement with Iran that was set to expire. In Seoul, tech stocks continued to lead gains. Market bellwether Samsung Electronics rose 0.46 percent, and its chipmaking rival SK hynix jumped 4.07 percent. Leading refiner SK Innovation climbed 3.11 percent, and shipping firm HMM surged 6.12 percent. Amo

Aug 18, 2026By Yonhap

Seoul shares trim earlier gains late Tuesday morning as investors lock in gains

Policy

Budget, education ministries clash over education grant reform

A government plan to reform the country's local education grant system is facing delays as the budget and education ministries remain divided over the details of a funding formula that has been largely unchanged for more than five decades, despite agreeing on the broad framework for reform. The issue gained momentum as the Ministry of Planning and Budget pushed aggressively for reform amid expectations of a substantial increase in tax revenue on the back of the semiconductor boom. Education grants have continued to rise automatically with tax revenue even as the school-age population declines, fueling concerns that the system could lead to excessive or inefficient spending on education. The two ministries are also at odds over how to use the new "future response fund," which will be financed with excess tax revenue generated by semiconductor exports and could be unveiled by the budget ministry as early as this week. The two ministries have reached broad agreement on scrapping the current system, which automatically allocates 20.79 percent of annual domestic tax revenue to local educatio

Aug 17, 2026By Lee Hyo-jin

Budget, education ministries clash over education grant reform

Others

How will government fine-tune controversial tax reform measures?

Korea is reviewing potential adjustments to the tax reform package unveiled on Aug. 3 following mounting public controversy and feedback, particularly regarding individual savings accounts (ISAs) that have drawn strong criticism from investors, according to government insiders Monday. For real estate taxes, however, the government is likely to stick to the core elements of its proposal, including the deduction structure and tax rates. Further adjustments, including the cap on comprehensive real estate tax increases, are expected to be addressed through parliamentary deliberations. The government plans to gather public input through Thursday before holding discussions at a Cabinet meeting, aiming to submit a final bill to the National Assembly early next month. The focus of the revisions centers on ISAs, which offer tax exemptions on interest and dividend income and serve as a popular investment vehicle for retail investors looking to build long-term wealth. Under the initial proposal, the government introduced a new “productive finance ISA” scheme while scrapping the annual contribut

Aug 17, 2026By Jun Ji-hye

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Read more

Seoul shares down over 5% late Wednesday morning on tech losses

KOSPI falls as high US Treasury yields overshadow AI optimism

Inter-Korean stocks soar on hopes for renewed US-North Korea talks

Main stock market's turnover falls to year-to-date low in August

Young Koreans lose trust in Lee government's economic policies

Retail investors return to gold market as prices rebound

Container shipping costs to Middle East continue rising in July amid conflict

Seoul shares trim earlier gains late Tuesday morning as investors lock in gains

Budget, education ministries clash over education grant reform

How will government fine-tune controversial tax reform measures?

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