South Korea’s KOSPI index falls 1% to 3,179.36 at close

South Korea’s KOSPI index falls 1% to 3,179.36 at close

South Korea's KOSPI index closed at 3,179.36 on July 2, 2025, marking a 1% decline from the previous day. The drop was primarily driven by profit-taking among investors following the South Korea-US summit, which initially fueled market optimism. The retreat was particularly pronounced in shipbuilding stocks, with Hanwha Ocean and HD Korea Shipbuilding & Offshore Engineering each falling by more than 5%. HD Hyundai Heavy Industries also experienced a 3% decline, unwinding earlier gains [1].

The sell-off was exacerbated by a significant withdrawal of foreign investors, totaling 476.6 billion won ($343 million). The Korean won softened against the dollar, and mixed bond yields indicated lingering uncertainty over interest rate movements. The broad sell-off, with only about a quarter of stocks gaining, highlighted investor caution and a return to reality post-summit [1].

The retreat underscores the gap between diplomatic hope and market fundamentals. While President Lee Jae Myung's summit boosted talk of US-Korea partnership, real progress hinges on solid investments and sustained earnings. The sell-off suggests that investors are waiting for more than diplomatic gestures before regaining confidence in the market [1].

References:
[1] https://finimize.com/content/south-korean-stocks-slipped-after-profit-taking-hit-shipbuilders