South Korean Stocks Plunge Nearly 4% Amid Fading U.S. Rate-Cut Hopes

Kospi Index Sees Sharp Decline

South Korea's benchmark Kospi index plunged by 3.81% on November 14, 2025, closing at 4,011.57 points. This significant drop, equivalent to 159.06 points, marked an end to a four-day winning streak for the index. The downturn was largely attributed to a widespread sell-off in technology shares and diminishing hopes for an imminent interest rate cut by the U.S. Federal Reserve.

Tech Giants Lead the Sell-Off

The technology sector bore the brunt of the market's decline, with several major South Korean companies experiencing substantial losses. Investors reassessed valuations, particularly in the artificial intelligence sector, following a global trend.

• Samsung Electronics, a global leader in semiconductors and electronics, saw its shares tumble by 5.45%.
• Chipmaking rival SK Hynix faced an even steeper fall, dropping 8.5%.
• LG Energy Solution, a prominent battery manufacturer, also retreated by 4.44%.

Other large-cap firms like Hyundai Motor and Naver also recorded declines, falling approximately 2.15% and 4.52% respectively.

U.S. Rate-Cut Expectations Diminish

A primary catalyst for the market's negative sentiment was the reduced likelihood of a U.S. interest rate cut in December. Comments from Federal Reserve officials tempered investor expectations, suggesting that interest rates might remain steady 'for some time'. Traders now estimate a 51.9% chance of a December rate cut, a notable decrease from nearly 70% just a week prior, according to data from CME Group. This shift in monetary policy outlook contributed to a broader risk-off sentiment across global markets, following a significant tumble on Wall Street the previous day.

Investor Reactions and Currency Performance

The market's breadth was notably weak, with a significantly higher number of stocks declining than advancing. Foreign and institutional investors were substantial net sellers, offloading holdings valued at approximately 2.4 trillion won and 900.2 billion won respectively. Conversely, retail investors took advantage of the lower prices, purchasing shares totaling around 3.2 trillion won. Despite the stock market's downturn, the Korean won demonstrated resilience against the U.S. dollar, appreciating to 1,457 won per dollar. This currency strength occurred amidst broader external economic pressures and government interventions aimed at stabilizing the won.