SEOUL — South Korean stocks closed lower on Friday, dropping more than 0.9 percent due to concerns about the government's corporate value-up program and the influence of a strong U.S. dollar. The Korean won also fell to its lowest level in 17 months against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index fell by 25.14 points, closing at 2,681.82, a decline of 0.93 percent. The trading volume was noted as moderate, with 501.3 million shares traded, valued at 11.7 trillion won (approximately US$8.5 billion). The day saw 507 stocks declining and 368 advancing. Retail and foreign investors were net buyers of local shares, purchasing stocks worth 589.8 billion won and 16.5 billion won, respectively, while institutional investors sold off 636.1 billion won in stocks.
Lee Kyoung-min, an analyst at Daishin Securities, reported that the strong dollar deterred foreign investment in South Korean stocks. He also highlighted concerns over the government’s corporate value-up program affecting low price-to-book ratio stocks after the opposition's victory in the parliamentary elections. Furthermore, the Bank of Korea held its key interest rate steady at 3.5 percent, which did little to boost investor confidence, leading to losses across several major sectors including technology, automotive, and financials. Notable declines were seen in Samsung Electronics and SK hynix, while a few sectors like biotechnology and internet services saw gains.