Korean Stocks Plunge 6.49%! Retail Investors Swept 7 Trillion Won in a Single Day, Setting Historical Record, as Foreign Institutions Execute Coordinated Massive Selloff

Middle East tensions escalate rapidly, with Trump issuing a 48-hour final ultimatum to Iran, triggering global market panic. Korea’s KOSPI index plummeted 6.49% on Wednesday, narrowly holding above the 5,400-point level, with foreign and institutional investors combined net selling over 7 trillion KRW; however, retail investors countered the trend, with a single-day net purchase of nearly 7 trillion KRW, setting a new record.

(Fourth week of Middle East conflict: Gold and silver market value evaporates $2 trillion in three hours, KOSPI crashes again)

KOSPI drops 6.49%, hitting trading halt during the session

According to Korea Exchange (KRX) data, KOSPI closed at 5,405.75 points on Wednesday, down 6.49% from the previous trading day. It opened at 5,580.15 points, a 3.48% decline, and shortly after opening, triggered the “seller protection mechanism,” activating temporary trading restrictions. In the final minutes of trading, the index briefly fell below the 5,400-point threshold but ultimately held the support level.

The KOSDAQ market also suffered a sharp decline, closing at 1,096.89 points, down 5.56%, breaking below the 1,100-point psychological level.

Retail investors make record-breaking buy-in against the trend, while foreign and institutional investors flee together

Amid this sharp decline, retail investors demonstrated remarkable buying strength, with a net purchase of 6.9984 trillion KRW in a single day, setting a new record for daily net buying. In contrast, foreign investors net sold 3.6754 trillion KRW, and institutional investors net sold 3.8127 trillion KRW, totaling over 7 trillion KRW in net selling, forming a stark contrast.

The KOSDAQ market showed a similar pattern: retail net bought 465.9 billion KRW, while foreign and institutional investors net sold 259.5 billion and 200.6 billion KRW respectively.

Samsung and SK Hynix lead declines, blue-chip stocks collapse across the board

Major large-cap stocks also fell in tandem with the market. Samsung Electronics (005930.KS) closed at 186,300 KRW, down 6.57% for the day; SK Hynix (000660.KS) dropped 7.35%, closing at 933,000 KRW. Hyundai Motor (005380.KS) fell 6.19%, LG Energy Solution (373220.KS) declined 5.19%, and SK Square (402340.KS) plunged 8.39%.

Trump issues 48-hour final ultimatum to Iran, igniting Middle East crisis

The trigger for this market plunge stems from the rapid escalation of geopolitical tensions in the Middle East. U.S. President Trump issued a final ultimatum to Iran over the weekend, demanding Tehran lift the blockade of the Strait of Hormuz within 48 hours; Iran responded with threats, warning that any attack on its power infrastructure would be retaliated against, raising high concerns over further escalation of Middle East conflict.

Geopolitical tensions also impacted international oil prices and exchange rates. Brent crude oil briefly surged past $100 per barrel; the Korean won depreciated sharply, with USD/KRW exchange rate rising 16.7 KRW to close at 1,517.3 KRW, reflecting significant weakening of the won.

Analyst: Liquidity expectations weaken, foreign and institutional investors rush to lock in profits

Daxin Securities researcher Lee Kyung-min (transliterated) stated: “Against the backdrop of rising global market uncertainty, expectations for central bank liquidity easing have noticeably diminished, prompting increased demand for cash holdings. This further led foreign and institutional investors to conduct large-scale, concentrated net sales mainly in semiconductor, securities, nuclear energy, and defense blue-chip stocks, aiming to realize profits as quickly as possible.”

This article: “Korean stocks crash 6.49%! Retail investors flood in with nearly 7 trillion KRW in a single day, setting a record; foreign and institutional investors jointly flee in a mass exodus” first appeared on Chain News ABMedia.