KOSPI Plunges Over 3%, Falls Below 3,960

KOSDAQ Also Drops Over 3%

The KOSPI plunged more than 3% during trading on the 18th, breaking below the 3,960 level.

As of 1:26 p.m. on the same day, the KOSPI was trading at 3,954.35, down 134.90 points (3.30%) from the previous trading day. The KOSPI started the session at 4,044.47, down 44.78 points (1.10%) from the previous close, but continued to widen its losses, successively falling below the 4,000 and 3,960 marks.

On the 18th, the KOSPI index opened at 4044.47, down 44.78 points from the previous trading day, displayed on the electronic board in the dealing room of Hana Bank in Jung-gu, Seoul. On the same day, the won-dollar exchange rate started trading at 1463 won, up 5 won from the previous trading day. November 18, 2025. Photo by Kang Jinhyung

On this day, individual investors recorded net purchases of 828.9 billion won, but foreign investors and institutions posted net sales of 263.8 billion won and 583.7 billion won, respectively, dragging the index lower.

By sector, shipbuilding, defense, holding companies, and retail (including apparel, department stores, and food & beverage) rose. However, sectors that previously led the KOSPI's gains-such as semiconductors, secondary batteries, automobiles, and securities-declined.

All of the top market capitalization stocks were in negative territory. Among them, SK Hynix posted the largest drop, falling 5.28% and losing the 600,000 won level.

Samsung Electronics (-2.68%), LG Energy Solution (-3.78%), Hyundai Motor (-2.39%), Doosan Enerbility (-3.30%), and Hanwha Aerospace (-4.90%) also declined.

With concerns over an artificial intelligence (AI) bubble persisting and caution mounting ahead of Nvidia's earnings announcement on the 19th, investor sentiment was affected. As a result, all three major indices on the New York Stock Exchange fell overnight.

Expectations for a rate cut by the US Federal Reserve have also diminished, weighing on investor sentiment.

Han Ji-young, a researcher at Kiwoom Securities, explained, "At the index level, we are likely to see a reversal of the previous day's gains, but at the sector level, a differentiated market is expected depending on individual issues and the extent of previous price declines."

Han added, "With the earnings season over, the direction of the stock market will be determined by US-driven factors such as macro developments (Fed officials' statements, employment data, etc.) and Nvidia's earnings. While we may face increased volatility as seen recently, it is advisable to prioritize other responses over excessively increasing cash holdings."

The KOSDAQ was also weak. As of the same time, the KOSDAQ was trading at 873.53, down 29.14 points (3.23%) from the previous session, breaking below the 900 level.

Among the top market capitalization stocks, Ecopro posted the largest decline, falling 5.90%. Most other stocks in this group also fell by 1% to 5%.

Lee Jaewon, a researcher at Shinhan Investment Corp., said, "With expectations for a December rate cut declining and negative news from US big tech, the AI value chain-including secondary batteries, robotics, and semiconductor materials and components-is underperforming. The bio sector, which had shown strength due to rotational buying despite weakness in the AI value chain, is also facing downward pressure."