30.09.202607:20:17UTC+00South Korean Shares Post Steepest Quarterly Fall Since 2020

The benchmark KOSPI slipped 0.48% to close at 6,838 on Wednesday, capping its sharpest quarterly decline since Q1 2020. The index tumbled 19% in the third quarter, snapping a streak of six consecutive quarterly gains.

The downturn was led primarily by a steep July selloff in heavyweight chipmakers, as mounting concerns over stretched AI-related valuations triggered broad profit-taking. At the same time, global bond yields surged to multi‑year highs, with persistent inflation worries and expectations of prolonged higher interest rates pressuring equity markets worldwide. Elevated oil prices amid continued tensions in the Middle East further stoked inflation fears and raised the risk that central banks could delay planned monetary easing.

Foreign investors remained net sellers of Korean equities throughout the quarter, adding to downside pressure. In addition, Samsung Electronics and SK hynix have now completed roughly 80% of their combined KRW 55 trillion share buyback programs, heightening the possibility that these purchases may wrap up earlier than expected and potentially reducing a key source of demand for KOSPI shares.

Among major constituents, losses were recorded in Samsung Electronics (-0.92%), Hyundai Motor (-1.29%), KB Financial Group (-2.42%), Shinhan Financial Group (-3.62%), and Kia Corp (-2.67%).