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KOSPI Drops Below 4,000 as Foreign and Institutional Investors Sell
18 Nov
Summary
- KOSPI falls below 4,000-point level for first time in 7 trading days
- Foreign and institutional investors lead the index's decline with net sales
- Concerns about a bubble in the AI industry amplify uncertainties
On November 18, 2025, the South Korean stock market experienced a significant decline, with the KOSPI index falling below the 4,000-point level during trading. As of 12:07 p.m. on the same day, the KOSPI had dropped to 3,999.59, marking the first time it had closed below the 4,000-point level in seven trading days since November 7th.
The KOSPI opened the day at 4,044.47, down 1.1% from the previous trading session. While it briefly rose to 4,072.41 in the early part of the session, the index turned downward again as selling pressure intensified. The decline was primarily driven by foreign and institutional investors, who were net sellers of 115.7 billion Korean won and 507.3 billion Korean won, respectively. In contrast, individual investors were net buyers of 587.7 billion Korean won.
The previous day's decline in the New York stock market, where the Dow Jones Industrial Average fell 1.2% and the S&P 500 and Nasdaq indices dropped 0.9% and 0.8%, respectively, also weighed on the domestic South Korean market. Additionally, concerns about a potential bubble in the AI industry are amplifying uncertainties, as institutional investors are reportedly reducing their exposure to AI-related stocks, including NVIDIA.
Major market capitalization-weighted stocks, such as Samsung Electronics, SK Hynix, Hyundai Motor, Doosan Enerbility, Hanwha Aerospace, and KB Financial, all experienced declines on the day. The KOSDAQ index also fluctuated around the 884 level, down more than 3% from the previous day.
