KOSPI Drops Below 7000 as Foreign, Institutional Investors Sell Heavily

South Korea's benchmark KOSPI index dropped below the critical 7000-point threshold in early trading on July 24, driven by a concerted sell-off from both foreign and institutional investors.

The decline follows a downturn in U.S. stock markets, which were impacted by surging international oil prices, growing concerns over interest rate hikes, and the financial burden of investing in artificial intelligence (AI). This negative sentiment has particularly affected the semiconductor sector, a cornerstone of the Korean economy.

Major players in the chip industry, Samsung Electronics and SK Hynix, saw their stock prices fall by 2-3% in early trading. Samsung Electronics was trading down 2.41% at 263,500 won, while SK Hynix saw a steeper decline of 3.23% to 1,857,000 won.

Data from the Korea Exchange indicated that foreign investors offloaded approximately 212.1 billion won worth of stocks, with institutions selling 11.6 billion won. In contrast, individual investors showed a net buying trend, purchasing around 238.7 billion won. The secondary KOSDAQ market also experienced a downturn, opening 1.62% lower and continuing to decline, with foreign and institutional investors also being net sellers.