KOSPI at 2,400 on 'foreign selling'...KOSDAQ 670 Collapse

[Anchor]
The KOSPI plunged for the second day on selling by foreigners and institutions.

The won-dollar exchange rate has remained in the 1,450 won range for the second day, and it has not escaped the shock of the US FOMC's "hawkish interest rate cut."

Reporter Choi Doo-hee reports.

[Reporter]
The KOSPI, which had fallen below the 2,400-point level during the day, barely managed to secure the 2,400-point level at the end of the session.

The KOSPI closed at 2,404.15, down 1.3% from the previous session.

Individual investors bought 790 billion won, but foreign and institutional investors pulled down the index as they net sold 818 billion won and 88 billion won, respectively.

This is because the uncertainty in monetary policy has grown since Powell, the chairman of the U.S. Federal Reserve, hinted at slowing the rate cut next year.

In addition, both Samsung Electronics and SK Hynix fell as U.S. Micron Technology issued disappointing earnings forecasts.

[Kim Young-hwan / NH Investment & Securities researcher: The nearly 1,450 won rise in the won-dollar exchange rate since the FOMC (U.S. Federal Open Market Committee) is putting a burden on foreigners' supply and demand. The negative outlook for Micron's earnings...]

The KOSDAQ index closed at 668.31, down 2.35% from the previous trading day, breaking the 670 level.

Like the KOSPI, foreigners and institutional investors dragged the index down.

The won-dollar exchange rate, which started at 1,450 won for the second day in Seoul's foreign exchange market, stood at 1,451.4 won as of 3:30 p.m.

As the exchange rate continued around 1,450 won, the government and the Bank of Korea announced measures to improve foreign exchange supply and demand conditions, including raising the limit on foreign exchange banks' forward positions and easing foreign currency loan requirements for exporters.

The intention is to respond to the surge in the won-dollar exchange rate by changing the policy stance, which strictly limited foreign exchange inflows to manage external soundness, to a flexible direction.

I'm Choi Doohee of YTN.

a photographer for
design;Jeong Eun-ok