Overview
- South Korea's Kospi plunged more than 6 percent on Thursday and the Korea Exchange activated a 20-minute sell-side 'sidecar' after heavy selling in chip names such as Samsung Electronics and SK hynix.
- Seoul's financial authorities moved to curb retail leverage by tripling minimum cash deposits for single-stock leveraged ETFs tied to Samsung and SK hynix, suspending new listings and raising minimum trading units.
- The Bank of Korea raised its policy rate by 25 basis points to 2.75 percent, its first hike in about three and a half years, a decision the bank said was aimed at stabilizing the won and addressing inflationary pressure.
- The market shock reflected two forces: renewed U.S.-Iran military strikes that kept Brent crude elevated and a crowded correction in memory and AI-related chip positions, even as TSMC reported a strong quarter and U.S. inflation readings cooled near-term Fed hike odds.
- The combined moves raise the risk of further volatility for regional investors, with higher trading costs and margin demands for retail traders and the chance of more policy steps if oil-driven inflation pressure persists.