File pic: A currency trader works near the screens showing the Korea Composite Stock Price Index (KOSPI) (AP Photo/Ahn Young-joon)
SEOUL: South Korean shares dropped almost 3% on Monday to close at their lowest levels since November 2023 as political turmoil deepened after impeachment motion against President Yoon Suk Yeol failed over the weekend.
The won weakened, while the benchmark bond yield fell. The benchmark KOSPI closed down 67.58 points, or 2.78%, at 2,360.58, its lowest level since Nov. 2, 2023.
Among index heavyweights, chipmaker Samsung Electronics fell 1.3% and peer SK Hynix gained 1.1%, while battery maker LG Energy Solution slid 0.77%.
South Korea's leadership crisis deepened on Sunday as prosecutors named President Yoon as a subject of a criminal investigation over last week's martial law attempt, a media report said, and his former defence minister was arrested, a day after he survived an impeachment vote in the opposition-led parliament.
South Korea's finance ministry and regulators said they will make all-out efforts to stabilise financial markets by deploying contingency plans announced earlier and preparing fresh measures to improve foreign exchange market liquidity by end-December.
Shares of Hyundai Motor shed 1.23% and sister automaker Kia Corp lost 2.95%, while search engine Naver and instant messenger Kakao were down 1.47% and 4.94%, respectively.
Of the total 938 traded issues, 60 shares advanced, while 870 declined.
Foreigners were net buyers of shares worth 103.4 billion won on the main board on Monday.
The KOSPI has fallen 11.10% so far this year, and lost 6.0% in the previous 30 trading sessions. The won has lost 10.4% against the dollar so far this year.
In money and debt markets, December futures on three-year treasury bonds rose 0.15 point to 106.90. The most liquid three-year Korean treasury bond yield fell by 0.9 basis points to 2.603%, while the benchmark 10-year yield slipped 6.3 basis points to 2.695%. - Reuters
