Stock prices in Seoul decline for the third consecutive day, anticipating the release of U.S. inflation figures.
South Korean Stocks End Flat Amid Cautious Investor Mood
The South Korean stock market showed a largely neutral reaction on August 10, 2025, as investors remained cautious ahead of the US consumer price data and the looming US tariff deadline with China.
The benchmark Korea Composite Stock Price Index (KOSPI) fell by 0.53 percent, closing at 3,189.91. This marked the third consecutive session of decline for South Korean stocks. Trade volume was moderate, with 369.6 million shares worth 10.05 trillion won ($7.2 billion) traded.
The local currency weakened against the US dollar, with a quote of 1,389.9 won at 3:30 p.m. (Yonhap), down 1.9 won from the previous session.
NCSOFT soared by 10.12 percent to 223,000 won due to better-than-expected second-quarter earnings. However, CJ ENM skidded by 0.8 percent to 74,400 won, and Doosan Enerbility decreased by 5.62 percent to 65,500 won. Hybe dipped by 2.42 percent to 282,000 won.
Samsung Electronics rose by 0.14 percent to 71,100 won, while SK hynix gained 0.75 percent, closing at 269,000 won. However, other sectors such as energy, shipbuilding, and entertainment experienced a decline. Korea Electric Power Corp. lost 1.15 percent, closing at 38,550 won. HD Korea Shipbuilding & Offshore Engineering dropped by 2.06 percent to 356,000 won. Hanwha Ocean retreated by 2.8 percent to 104,000 won.
Investors were awaiting the release of US consumer price data, which could provide clues on the Federal Reserve's future interest rate path. Analysts were anticipating that tariffs might push core inflation up from 2 percent to an annual pace of 3.0 percent, which could in turn affect Federal Reserve policy and global markets including South Korea.
By August 20, 2025, South Korea’s KOSPI had dipped 0.7%, partly influenced by geopolitical tensions and not directly by the US inflation data released earlier. Foreign and institutional investors sold a net 60.05 billion won and 98 billion won worth of stocks, respectively, while individuals bought a net 63.5 billion won worth of stocks. Decliners outnumbered gainers by 547 to 343.
In summary, the US inflation data around August 10 led to a cautious and largely neutral reaction in South Korean stocks, with no strong gains or losses, as investors awaited clarity on inflation and trade issues that could influence monetary policy and economic conditions.
The cautious investor mood regarding the US consumer price data and US tariff deadline with China affected the South Korean business sector, as evidenced by South Korean stocks ending flat and the KOSPI falling for the third consecutive session. Despite the overall neutral market reaction, some individual companies like NCSOFT and Samsung Electronics showed gains in the finance sector, highlighting the mixed performance of South Korean stocks during this period.
