The domestic stock market, which had been flourishing, is experiencing a sharp decline on the 1st in response to the government's tax reform plan that strengthens tax standards for the stock market. The KOSPI index, which has fallen below the 3200 level, is struggling to hold onto the 3100 range, while the KOSDAQ index has also declined by more than 3%.
As of 11:30 a.m. on that day, the KOSPI index recorded 3,150.17, down 95.40 points (2.94%) compared to the previous trading day. It opened at 3,210.32, down 35.12 points (1.08%) from the previous session, and has gradually expanded its decline. Individual investors are buying 1.1363 trillion won, while foreign and institutional investors are purchasing 521.3 billion won and 644.1 billion won, respectively.
The stocks with the highest market capitalization are mixed. Semiconductor leaders Samsung Electronics and SK hynix are down 1.75% and 5.12%, respectively. The preferred stock of Samsung Electronics is down 1.13%. LG Energy Solution, Samsung Biologics, HD Hyundai Heavy Industries, KB Financial, and others are also on a downward trend. In particular, Hanwha Aerospace is down 6.53%. Conversely, some stocks, such as Kia, are rising.
The KOSDAQ index is trading at 779.58, down 25.66 points (3.19%) compared to the previous trading day. It opened at 796.24, down 9.00 points (1.12%) from the previous trading day. Individual investors are buying 148.3 billion won, while foreign and institutional investors are selling 62 billion won and 83.7 billion won, respectively.
Among the top 10 stocks by market capitalization, Alteogen is down 5.51%, and Sam Chun Dang Pharm is down 5.62%. Ecopro BM, Ecopro, Peptron, Rainbow Robotics, LigaChem Biosciences, and HUGEL are all also down. PharmaResearch has turned upward.
Han Ji-young, a researcher at Kiwoom Securities, noted, "The tariff negotiations have avoided the worst, but uncertainties remain by sector, and the tax reform plan includes an increase in major shareholder requirements and a greater tax burden on dividend income, leading to increased disappointment."
As of 11:35 a.m. on that day, the won-dollar exchange rate was 1,399.00 won, up 4.00 won compared to the previous day. It had even risen to 1,400 won during the day, marking the first time in over two months since May 19, when the intraday high was 1,401.3 won.