[Opening Market Briefing] 'Trump-Induced Fear of Recession' KOSPI Plummets 1.9%… Struggles to Preserve 2,520 Level

# KOSPI Slumps Nearly 2% Amid U.S. Market Turmoil Seoul (Blockmedia) – South Korea's KOSPI index dropped nearly 2% in early trade on the 11th, following a sharp decline in U.S. stock markets. Significant selling by foreign investors is adding downward pressure on the market. As of 9:26 a.m. KST, the KOSPI stood at 2522.50, down 47.89 points (1.86%) from the previous trading day. The index opened 53.70 points (2.09%) lower at 2516.69 and continued its decline, although the extent of the drop has not substantially increased. In the main bourse, institutions have net sold 76.7 billion won worth of stocks, and foreigners have offloaded 26.1 billion won. In contrast, individual investors have net purchased 106.7 billion won. Notably, foreign investors net sold 483.0 billion won in KOSPI 200 futures, further dragging down the index. Overnight, the New York Stock Exchange saw a steep decline, with the Nasdaq Composite plummeting 4.0% amid heightened recession fears. President Donald Trump's comments in a television interview, describing the current situation as a "transition" and not ruling out a recession while pushing forward with high tariff policies, stoked these fears. The sell-off in tech stocks like Tesla (-15.43%), Nvidia (-5.07%), and Apple (-4.85%) has also negatively impacted Korean markets. By sector, all categories are declining, with machinery and equipment (-3.58%), metals (-2.71%), precision medical instruments (-2.55%), and IT services (-2.29%) leading the falls. However, telecommunications (-0.15%) and retail (-0.38%) sectors are faring slightly better. Among large-cap stocks, all top 30 companies by market capitalization are in the red, including Samsung Electronics (-1.30%), SK Hynix (-2.87%), LG Energy Solution (-2.43%), Samsung Biologics (-2.22%), Hyundai Motor (-1.17%), Celltrion (-1.09%), and Kia (-0.82%). Jiyoung Han, an analyst at Kiwoom Securities, remarked, "The sharp decline in U.S. markets seems excessive, given that various indicators have not yet pointed to a recession. There could be a rotation into sectors like biotechnology, which benefit from lower interest rates and have defensive attributes amid economic uncertainty." # KOSDAQ Also Down Amid Weakness in Battery and Pharmaceutical Stocks The KOSDAQ index has similarly dropped, recording 712.11 as of the previous trading day, down 13.71 points (1.89%). It opened 15.62 points (2.15%) lower at 710.20, continuing to fluctuate around the 710 level. In the KOSDAQ market, individuals and institutions have net sold 27.7 billion won and 11.3 billion won, respectively, while foreigners have net purchased 44.4 billion won. Among top-value stocks, battery-related stocks such as Ecopro BM (-2.68%) and Ecopro (-2.67%) are declining. Other notable laggards include Rainbow Robotics (-3.84%), Leeno Industrial (-2.33%), and HPSP (-3.52%). Meanwhile, in the Seoul foreign exchange market, the won-dollar exchange rate started trading at 1,459.1 won per dollar, up 6.8 won from the previous trading day.