Seoul: Seoul shares fell for the fourth consecutive session on Monday, concluding the final trading day of 2024 in negative territory amidst domestic political instability. The South Korean won also weakened for the fifth straight day against the U.S. dollar, reaching its lowest level since the 2009 global financial crisis.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) decreased by 5.28 points, or 0.22 percent, ending the day at 2,399.49. Trading volume was light, with 239 million shares exchanged, valued at 3 trillion won (approximately US$2.04 billion). The market saw more decliners than advancers, with 803 stocks falling compared to 115 gaining.
Foreign investors were net sellers, offloading 172.5 billion won, while individual investors purchased a net 214 billion won. Institutional investors sold a net 114 billion won. The market has been unsettled by political upheaval following President Yoon Suk Yeol's brief martial law declaration on December 3, which resulted in an impeachment motion against him. Furthermore, acting President Han Duck-soo was also impeached last week, transferring leadership to Finance Minister Choi Sang-mok.
Additionally, the anticipated economic policy changes and high tariffs from the incoming Trump administration have exerted further downward pressure on the market. "While there was some optimism for a breakthrough in the run-up to the passage of the president's impeachment motion, the prolonged phase of political uncertainties is raising concerns about the potential negative impact on South Korea's international credibility," stated Lee Kyung-min, a researcher at Daishin Securities.
The decline was led by chipmakers and automotive stocks, with Samsung Electronics dropping 0.93 percent to 53,200 won and Hyundai Motors falling 1.40 percent to 212,000 won. Financial stocks and shipyards also saw declines, with KB Financial slumping 2.47 percent to 82,900 won and HD Hyundai Heavy Industries decreasing 0.69 percent to 287,500 won.
Jeju Air shares plunged 8.65 percent to 7,500 won, and its parent company Aekyung Holdings fell 12.12 percent to 9,640 won following a tragic Jeju Air plane crash on Sunday that resulted in 179 fatalities, marking South Korea's worst aviation disaster.
In contrast, bio shares and refiners showed gains. Samsung Biologics rose 1.61 percent to 949,000 won, while SK Innovation increased 0.90 percent to close at 112,000 won.
The South Korean won was trading at 1,472.50 against the U.S. dollar at 3:30 p.m., a decline of 5 won from the previous session, as demand for safer assets and year-end settlements surged. This marks the currency's lowest level since 2009.