The local stock benchmark Kospi turned negative on Friday after briefly surpassing the 2,500 threshold during a volatile session triggered by President Yoon Suk Yeol’s impeachment ruling. Meanwhile, the Korean won strengthened against the US dollar as political uncertainty eased.
The Kospi fluctuated significantly throughout the session before closing at 2,465.42, down 21.28 points, or 0.86 percent from the previous day, according to data from the Korea Exchange.
The index opened at 2,450.49 and soared to as high as 2,506.71 before the Constitutional Court's impeachment ruling. But it reversed course and dropped to an intraday low of 2,438.02 once the ruling was delivered, reflecting investor anxiety over US tariff measures.
Foreign investors led the decline, offloading shares worth 1.78 trillion won ($1.24 billion). In contrast, retail investors and institutional investors were net buyers, purchasing 1.07 trillion won and 620 billion won, respectively.
On the secondary Kosdaq market, the index closed at 687.39, up 3.90 points, or 0.57 percent, from the previous session.
The Korean won gained strength Friday as the easing of political uncertainty following the impeachment verdict spurred investor confidence. The won closed daytime trading at 1,434.1 per US dollar, appreciating by 32.9 won on the day.
The won opened at 1,450.5 and climbed to 1,430.2 during the verdict announcement. This was the first time in over a month that the currency entered the 1,430-won range since Feb. 26.
Prior to the martial law declaration on Dec. 3, the won had been trading at around 1,400 per dollar, but it plunged to 1,486.7 on Dec. 27 as political instability intensified with the impeachment of Prime Minister Han Duck-soo. The 80 won depreciation driven by the political crisis has since rebounded by nearly 50 won following Yoon’s removal from office on Friday.
The won’s appreciation was also supported by the devaluation of the US dollar, which came amid concerns that the American economy could slide into a recession due to the dampening effects of newly announced tariffs.
“The won may continue to gain against the dollar as investor demand for the Korean currency rises, amid a weakening greenback,” said Lee Joo-won, an economist at Daishin Securities.
silverstar@heraldcorp.com
