South Korea’s markets opened Thursday on a softer note, with both the Kospi and Kosdaq drifting lower as investors weighed global technology volatility and looked ahead to the Bank of Korea’s upcoming policy guidance. By 02:15 CET (09:15 KST), the Kospi traded around 3,175, down about 0.1%, while the tech-focused Kosdaq eased to just under 801.
Cautious early sentiment
The opening tone reflected caution across Asia, where mixed signals from global technology earnings and renewed tariff concerns dampened risk appetite. In Seoul, exporters and semiconductor shares were under scrutiny, mirroring moves seen across the region as traders assessed demand prospects and supply chain risks.
Policy watch
Markets remain focused on the Bank of Korea’s rate decision due later in the day. Economists expect no immediate change, with the policy rate holding at 2.50%. Investors are instead watching Governor Rhee Chang-yong’s comments on inflation trends, household debt, and external risks for cues on the medium-term outlook.
Foreign flows and currency dynamics
The won opened little changed, keeping currency pressures at bay for now. Foreign flows into equities have been mixed in recent sessions, with investors alternating between large-cap technology and more defensive consumer plays. Stability in the currency could provide room for selective inflows, though volatility in global risk sentiment remains a constraint.
Looking ahead
Key drivers for the session include the central bank’s policy statement, semiconductor sector updates following global earnings reports, and the pace of foreign investor activity. If the Bank of Korea signals steady guidance, the Kospi could stabilise towards the 3,190 level, though momentum is likely to remain fragile without clear leadership from technology stocks.
REFH – Newshub, 28 August 2025
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