🇰🇷 June 23, 2025 (Mon) – Korean Stock Market Slightly Retreats Amid Geopolitical Risks 📉
📊 Market Summary
- KOSPI: 3,014.47 (-0.24%)
- KOSDAQ: 784.79 (-0.85%)
- KRW/USD Exchange Rate: 1,374.50 KRW (-0.15%)
The Korean stock market saw slight pullbacks as geopolitical risks in the Middle East resurfaced and fiscal concerns about the second supplementary budget weighed on sentiment. Foreign investor net-selling led to weak closings for both major indices.
📰 Key News & Issues
1. 🌍 "Urgent" Geopolitical Alert Over Middle East Tensions
President Lee Jae-myung declared the U.S.-Iran conflict fallout as "extremely urgent," initiating an emergency response system to stabilize the financial and energy markets.
(Source: fntoday.co.kr, news1.kr)
2. ⛽ Export & Inflation Worries
The Ministry of Industry and Culture expressed concerns over potential trade and inflationary impact if the Strait of Hormuz faces disruptions. Monitoring of global trade and energy markets has been intensified.
(Source: news1.kr, fnnews.com)
3. 💵 30.5 Trillion KRW Supplementary Budget Submitted
The second supplementary budget, amounting to 30.5 trillion KRW, was formally submitted to the National Assembly on June 23. It prioritizes AI, SMEs, and consumer revitalization measures.
(Source: news.mt.co.kr, news1.kr)
4. 📉 Tech Stock Correction, Foreign Net-Selling
After an early rally, foreign investors sold over 300 billion KRW in equities, especially tech stocks, leading to a market-wide correction.
(Source: edaily.co.kr, yonhapnews.co.kr)
5. 🏦 Finance Ministry Intensifies Market Surveillance
Finance Minister Lee Heung-il highlighted active monitoring of both financial and energy sectors due to rising tensions in the Middle East.
(Source: biz.chosun.com)
6. 📈 Continued Momentum From MSCI Accessibility Upgrade
The recent MSCI upgrade in short-selling accessibility continues to support positive foreign investor sentiment, though caution is increasing due to global tensions.
(Source: hankyung.com, investing.com)
🔮 Outlook & Upcoming Events
- June 24: MSCI Market Classification Review
- June 25: South Korea Export/Import and Industrial Output Data
- June 29: U.S. CPI & Core PCE Data
- Early July: National Assembly Vote on the Supplementary Budget
Investor focus will remain on the geopolitical landscape, economic indicators, and fiscal policy directions.
💡 Conclusion & Investment Strategy
✅ Summary
Despite geopolitical headwinds, the KOSPI remains resilient above 3,000, buoyed by expectations for policy support and improved investor accessibility via MSCI reclassifications.
📌 Strategy
- Defensive Plays: Focus on energy and utilities amid global uncertainties
- Policy-Beneficiaries: AI, financials, consumer sectors as budget priorities
- Currency Hedge: Consider KRW-hedged ETFs in response to volatility
- Staggered Entries: Buy selectively near 3,000 support level
- MSCI Catalysts: Pre-positioning in stocks with global index potential
📝 Final Note
Markets are navigating a fragile zone, where geopolitical fears and policy-driven hope intersect. Maintain a balanced, proactive stance and stay alert to upcoming economic releases and legislative developments. May this be a week of smart decisions and steady growth for your portfolio!