[KOSPI Closing Update] Index Drops Below 2600 Due to U.S. Market Turmoil; Foreign and Institutional Investors 'Sell-Off'

# South Korean Markets Drop Due to Foreign and Institutional Selling Pressure On October 22, the Kospi Index fell by 31.91 points or 1.22%, closing at 2,593.67 from the previous session's 2,625.58. This decline was driven by substantial foreign and institutional selling. Individual investors in the main board market bought a net 945.3 billion won worth of shares. In contrast, foreign investors sold shares worth 485.9 billion won, and institutions offloaded 432 billion won in equities. # Sector Performance Analysis At the sectoral level, gains were recorded in textiles (2.38%), electricity and gas (0.88%), and medical and precision equipment (0.56%). However, machinery and equipment (-2.71%), metals (-1.75%), and electrical components (-1.54%) contributed to the market's downward trend. # Significant Declines Among Large-Cap Stocks Large-cap stocks on the Kospi saw broad declines. Samsung Electronics, a key stock, dropped 1,000 won or 1.8%, closing at 54,700 won. Other major declining stocks included SK Hynix (-1.8%), Samsung Biologics (-1.82%), LG Energy Solution (-1.08%), Hanwha Aerospace (-0.48%), KB Financial (-1.33%), Hyundai Motor (-2.98%), Kia (-2.19%), HD Hyundai Heavy Industries (-1.25%), and Celltrion (-1.98%). # Kosdaq Index Experiences Decline The Kosdaq Index also decreased, opening at 720.96, down 2.66 points or 0.37% from its previous close of 723.62. It ended at 717.67, a drop of 5.95 points or 0.82%. The top 10 Kosdaq stocks showed mixed results. Among the decliners were Alteogen (-0.77%), EcoPro BM (-0.34%), Rainbow Robotics (-1.48%), Hugel (-2.37%), and Classys (-1.52%). On the other hand, HLB (0.95%), EcoPro (0.73%), Peptron (0.96%), PharmaResearch (0.23%), and Rigakem Bio (1.19%) advanced. # Analyst Insight Kim Ji-won, a researcher at KB Securities, attributed the market decline to factors such as the sharp rise in U.S. Treasury yields, ongoing fiscal concerns, and pressure on the exchange rate. She pointed out that a weak 20-year U.S. Treasury auction triggered the market drop, with a lower bid-to-cover ratio and higher yields compared to previous months. Kim added that continued uncertainties around tariffs, exchange rates, and U.S. fiscal issues could extend the selling pressure at the current index level. # Currency Market Update In the currency market, the South Korean won appreciated against the U.S. dollar. The exchange rate closed at 1,381.3 won per dollar, a decrease of 5.9 won from the prior day's session in Seoul.