South Korean Stocks Plunge Amidst Global Market Fears

South Korea's stock market endured a brutal 'Black Friday' session, with the benchmark KOSPI index experiencing its steepest decline in three weeks. The index plunged 5.54%, closing at 8160.59 points on Friday, marking a significant loss of 478.82 points from the previous trading day.

The sharp sell-off triggered a 'sell-side car' trading halt for the KOSPI index, a measure activated when futures prices drop by more than 5% within a minute. This intervention underscores the panic that gripped the market, with the index at one point falling nearly 7% to a low of 8030 points during intraday trading.

Major technology stocks, which had recently driven market gains, were among the hardest hit. Samsung Electronics saw a decline of over 6%, while SK Hynix plummeted by more than 9%. Analysts attributed the broad market downturn to a combination of factors, including disappointing revenue guidance from U.S. chipmaker Broadcom, which dampened investor sentiment in the semiconductor sector. This was compounded by a general risk-off sentiment and global liquidity withdrawal.

The KOSDAQ index mirrored the KOSPI's decline, falling 4.50% to close at 1002.44 points. During the session, it briefly dipped below the 1000-point mark for the first time in three months. Foreign investors continued their selling streak for the 20th consecutive trading day, offloading significant amounts, while individual investors bought heavily in response.