South Korean stocks plunge 5.5% on tariff-triggered panic selling

South Korean stocks plunged more than 5.5% on Monday, extending their losing streak to a fourth straight day, as investors panicked over the escalating global trade war sparked by tit-for-tat tariffs from the United States. The Korean won fell against the dollar by the most since the COVID-19 pandemic.

According to Yonhap News Agency, the Korean Kospi Composite Stock Price Index lost 137.22 points, or 5.57%, to close at 2,328.20. The tech-dominated Kosdaq also fell 5.8%.

Shortly after the market opened, the first temporary suspension since August 2024 was activated, suspending software purchases for five minutes, after the Kospi 200 index fell more than 5% for more than a minute. Foreigners sold 2.09 trillion won worth of local stocks, while individual and institutional investors bought 1.67 trillion won and 253.2 billion won, respectively.

The local currency was trading at 1,467.8 won against the dollar at 3:30 p.m., down 33.7 won from the previous session.

This is the largest daily decline since March 19, 2020, when the currency fell by 40 won amid the COVID-19 pandemic.