Kospi slips as sell-off hits U.S. stocks overnight

(Yonhap)

South Korean stocks tumbled on Wednesday morning, slipping into the 4,850 range, tracking a sharp overnight sell-off of U.S. stocks on Wall Street.

The benchmark Kospi stood at 4,856.87 as of 9:18 a.m. on Wednesday, down 0.59 percent from the previous session.

The index opened sharply lower, down 1.57 percent at 4,808.94, as has since pared some of its losses while remaining in the negative territory.

In the main bourse, individuals and institutions were net sellers of 229.9 billion won ($156.3 million) and 51.4 billion won, respectively, while foreigners were net buyers of 274.3 billion won worth of shares.

Overnight, Wall Street’s three major indices plunged across the board as the United States and the European Union exchanged tariff threats over Greenland.

U.S. President Donald Trump said he would impose a 10 percent tariff on European countries if no agreement is reached on securing Greenland for the U.S.

He also threatened to slap a 200 percent tariff on French wine and champagne while pressuring French President Emmanuel Macron to participate in a Gaza peace committee.

In response, the EU announced countermeasures, unveiling a 93 billion euro package of tariffs against the U.S. and considering activation of the Anti-Coercion Instrument (ACI).

The CBOE Volatility Index (VIX), often referred to as “fear gauge,” rose to 20.09 near the close of the New York market, its highest level in about two months since November 2025.

The yield on the 10-year U.S. Treasury note climbed 6 basis points from the previous session to 4.29 percent, the highest level in more than four months.

“The domestic market opened lower after the sharp decline in U.S. stocks driven by uncertainty surrounding President Trump,” said Han Ji-young, an analyst at Kiwoom Securities Co.

Losses were partially offset after data showed Korea’s exports from the first 20 days of January rose 14.9 percent on year, led by a 70.2 percent surge in semiconductor shipments.

Among blue-chip stocks, secondary battery makers led losses, with LG Energy Solution Ltd. down 2.23 percent, POSCO Holdings Co. falling 2.66 percent, and Samsung SDI Co. retreating 2.3 percent.

Other heavyweights also tumbled, including Hanwha Aerospace Co. (0.46 percent) and Doosan Enerbility Co. (3.57 percent).

Large-cap semiconductor stocks, on the other hand, supported the benchmark, with Samsung Electronics Co. rising 0.69 percent and SK hynix Inc. gaining 0.67 percent.

The tech-heavy Kosdaq index dropped 1.64 percent to 960.32, retreating to the 960 range a day after topping 980 for the first time in four years.

It opened 1.88 percent lower at 958.05 and remained under pressure.

The Kospi closed at 4,909.93 on Wednesday, up 0.49 percent from the previous session while the Kosdaq fell 2.57 percent to 951.29.

Samsung Electronics finished at 149,500 won and Hyundai Motor at 549,000 won.