Seoul, South Korea – The Korean financial market faced a cold snap on Wednesday as the US dollar strengthened globally and US stocks declined following the release of robust US employment data. The won-dollar exchange rate returned to the 1,470 won level, while the KOSPI index fell below the 2,500 mark.

In the Seoul foreign exchange market, the won-dollar exchange rate closed at 1,470.8 won, up 5.8 won from the previous trading day. This marked the first time the weekly closing price has exceeded 1,470 won since late last month.

The strengthening of the US dollar, as measured by the dollar index, was fueled by the recent US employment data, which diminished expectations of an early interest rate cut by the Federal Reserve. The dollar index rose 0.49% to 109.872, reflecting renewed global dollar strength.

Additionally, foreign investors turned net sellers, offloading 800 billion won worth of shares, further contributing to the depreciation of the won and the decline in the Korean stock market.

The KOSPI index closed at 2,489.56, down 1.04% or 26.22 points from the previous trading day. Foreign investors were the primary sellers, offloading 876.1 billion won worth of shares. Domestic institutional investors and retail investors purchased 254 billion won and 7,465 billion won worth of shares, respectively.   

Semiconductor stocks, such as SK Hynix (-4.52%) and Samsung Electronics (-2.17%), were among the hardest hit by foreign selling.

The KOSDAQ index fared even worse, closing at 708.21, down 1.35% or 9.68 points. Foreign investors and institutional investors were net sellers, offloading 376 billion won and 503 billion won worth of shares, respectively, while retail investors purchased 994 billion won.   

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