Korea: Foreigners dump record-near KRW 6.95T on KOSPI; KRW/USD breaks 1,530 for first time since GFC

South Korean equities fell sharply on June 4, 2026, as foreign investors dumped a net KRW 6.95 trillion ($4.5 billion) in a single session — the second-largest single-day foreign net sell on record for the KOSPI — pushing the index down 1.84% to 8,639.41. Simultaneously, KRW/USD breached 1,530 won, a level not seen since the 2008-09 global financial crisis.

The Korean market was closed June 3 for local elections, amplifying pent-up selling pressure on reopening. Foreign net selling has continued for 19 consecutive trading sessions, accumulating to approximately KRW 66 trillion (~$43 billion) over that stretch.

Domestic buyers partially absorbed the blow — individuals bought KRW 5.02 trillion and institutions added KRW 1.81 trillion — but could not offset the KRW 6.95 trillion foreign outflow. The KOSDAQ index rose 2.31% to 1,049.73, supported by policy optimism and strength in semiconductor parts and materials stocks.

Catalysts include rising Middle East military tensions, contagion from Wall Street's decline, and a self-reinforcing dynamic: a weaker KRW erodes foreigners' Korea-denominated returns when repatriated, accelerating exits. The Bank of Korea (BoK) held its base rate at 2.50% at the May 28 MPC meeting. Key watchpoints: the next MPC meeting and any signal of FX intervention from Korean authorities.