KOSPI plunges more than 2% on Trump’s hard-line remarks… won-dollar rate breaks above 1,518

The KOSPI index has widened its losses to more than 2% after turning lower intraday on the 2nd. The move is seen as reflecting renewed concerns over a prolonged war following U.S. President Donald Trump’s public address on the Iran war.

As of 10:26 a.m., the KOSPI is down 141.11 points (2.58%) from the previous session to 5,337.59. After opening up 1.33%, the benchmark briefly extended gains to as much as 1.75% in early trading, reclaiming the 5,570 level, but reversed course following President Trump’s press conference related to the Iran war and at one point saw losses deepen to 2.69%.

The downturn appears to stem from rising concerns over a prolonged conflict in the Middle East. In the address, President Trump delivered hard-line remarks, saying, “Over the next 2–3 weeks, we will strike Iran on a massive scale and send it back to the Stone Age.”

In the main board market, retail and foreign investors are selling 232.6 billion won and 212.8 billion won, respectively, while institutions are buying 381.0 billion won.

Among the top KOSPI market-cap names, Samsung Electronics, SK hynix, Hyundai Motor, SK Square, Doosan Enerbility and HD Hyundai Heavy Industries are falling, while Samsung Biologics, Hanwha Aerospace, Kia and KB Financial are rising.

The KOSDAQ index is also lower at the same time, down 27.16 points (2.43%) from the previous session to 1,089.02. The KOSDAQ likewise opened 1.25% higher, then moved back and forth around flat territory from about 10:04 a.m. before cementing a downward trend. In the KOSDAQ market, foreign and institutional investors are selling 203.5 billion won and 153.0 billion won, respectively, while retail investors are buying 387.8 billion won.

Among the top KOSDAQ market-cap names, EcoPro, EcoPro BM, Alteogen, Rainbow Robotics, ABL Bio, Kolon TissueGene, Lino Industrial, LigaChem Biosciences, HLB and Peptron are falling, while Caregen is rising.

The won-dollar exchange rate is showing additional gains following President Trump’s address. The won-dollar rate opened at 1,512.2 won, up 10.9 won from the previous day’s onshore closing price, and is currently at 1,518.5 won.

Fixed Sam Ko, Hankyung.com reporter jsk@hankyung.com