Korea's financial market was roiled Friday by Britain's exit from the European Union, with the local stock market plunging over 3 percent and the local currency nosediving.

The country's benchmark Korea Composite Stock Price Index shed 70.43 points, or 3.55 percent, to 1,916.53 as of 2:20 p.m. From a session earlier, the Korean won fell 28.20 won, or 2.6 percent, against the U.S. dollar to trade at 1,178.40 won. 

The main index opened up at 2,001.55 but turned lower on late Friday morning as early vote results on Britain's EU membership withdrawal showed a tight race. The British broadcaster BBC's projections that Britons will vote to leave the EU sent it lower.

Analysts expected increased volatility in the domestic stock and currency markets as Britain voted to separate from the EU. "The Brexit decision will have an impact on the local markets for the rest of the year. There will be a growing demand for further rate cuts and stimulus packages to support the economy," KDB Daewoo Securities Co. analyst Yoon Yeo-sam said. 

Britain's decision to leave the 28-nation bloc was not widely expected until vote counts started. Polls conducted after the murder of pro-EU lawmaker Jo Cox last week indicated the "remain" camp was ahead of the "leave" camp.

Most large-cap stocks declined across the board. Market bellwether Samsung Electronics Co. shed 3.01 percent, top carmaker Hyundai Motor Co. fell 1.77 percent, and state utility Korea Electric Power Corp. declined 2.22 percent.

Foreigners and individuals were net sellers of a combined 31 billion won worth of local stocks. But institutions bought a net 34 billion won of stocks, keeping the main index from falling further. (Yonhap)