South Korean stocks fell 3 percent to a near two-month low Monday ahead of US reciprocal tariffs set to be announced later this week amid the removal of a short selling ban. The local currency sharply fell against the US dollar.
The benchmark Korea Composite Stock Price Index dropped 76.86 points to close at 2,481.12, marking the lowest closing since Feb. 3, when it finished at 2,453.95.
Trade volume was slim at 385.5 million shares worth 8.1 trillion won ($5.5 billion), with losers sharply outnumbering winners 824 to 87.
Foreigners sold a net 1.5 trillion won worth of stocks, while institutions and individuals purchased a net 666.9 billion won and 789.9 billion won, respectively.
Analysts said investors were concerned that US President Donald Trump's reciprocal tariffs, slated for Wednesday, would trigger a global trade war. He also confirmed 25 percent tariffs on all imported cars set to take effect Thursday.
Moreover, the South Korean financial authorities lifted the short selling ban Monday. The lifting of the ban, imposed in 2023, is expected to fuel short-term volatility but boost overall liquidity in the long term.
Most shares suffered a sharp decline.
Top-cap Samsung Electronics sank 3.99 percent to 57,800 won, and its chipmaking rival SK hynix tumbled 4.32 percent to 190,700 won.
Carmakers were among the biggest losers as industry leader Hyundai Motor slumped 3.8 percent to 197,200 won, and Hyundai Mobis, an auto parts-making affiliate under Hyundai Motor Group, slid 2.62 percent to 260,500 won.
Battery makers also went south as LG Energy Solution plunged 6.04 percent to 334,500 won and POSCO Future M plummeted 6.38 percent to 120,300 won.
Leading pharma Celltrion lost 4.57 percent to 169,000 won, and major cosmetics firm Amorepacific skidded 2.97 percent to 101,400 won.
The local currency was trading at 1,472.9 won against the greenback at 3:30 p.m., down 6.4 won from the previous session. (Yonhap)
