South Korean shares post biggest drop in three weeks as high bond yields weigh

SAMSUNG BIOLOGICS

19/08/2026 07:57

KOSPI falls, foreigners net sellers
Korean won strengthens against dollar
South Korea benchmark bond yield falls
For the midday report, please click nL1N44G022
SEOUL, Aug 19 (Reuters) - Round-up of South Korean financial markets:

** South Korean shares closed nearly 6% lower on Wednesday, posting their biggest one-day drop in three weeks on a selloff in chipmakers triggered by high bond yields. 
** The benchmark KOSPI .KS11 closed 398.66 points, or 5.80% lower at 6,471.17. On Tuesday, it fell 1.5%, snapping five straight sessions of gains. 
** "It seems investors are quickly rushing out of stock market volatility, with bond yields being a trigger," said Huh Jae-hwan, an analyst at Eugene Investment Securities. 
** "There is a wait-and-see mood after sharp losses and sharp gains," Huh added.
** Long-term borrowing costs from the U.S. to Germany and Japan hit their highest in decades due to ballooning government debt and geopolitics, raising borrowing costs for companies and households and complicating policy.     
** Among index heavyweights, chipmaker Samsung Electronics 005930.KS fell 7.82%, while peer SK Hynix 000660.KS lost 9.75%. Battery maker LG Energy Solution 373220.KS climbed 1.85%.
** Hyundai Motor 005380.KS and sister automaker Kia Corp 000270.KS were down 4.83% and down 3.06%, respectively. Steelmaker POSCO Holdings 005490.KS shed 1.39%, while drugmaker Samsung BioLogics 207940.KS rose 0.85%.
** Of the total 906 traded issues, 171 shares advanced, while 703 declined.
** Foreigners were net sellers of shares worth 3.5 trillion won ($2.5 billion). 
** The won was quoted at 1,397.7 per dollar on the onshore settlement platform KRW=KFTC, 1.06% higher than its previous close at 1,412.5. The currency hit its highest level since September 2025. 
   ** In money and debt markets, September futures on three-year treasury bonds KTBc1 gained 0.15 point to 103.28.
** The most liquid three-year Korean treasury bond yield KR3YT=RR fell by 3.8 basis points to 3.803%, while the benchmark 10-year yield KR10YT=RR fell by 3.0 basis points to 4.345%.

($1 = 1,397.9200 won)

 (Reporting by Jihoon Lee; Editing by Ronojoy Maumdar)
 ((jihoon.lee@thomsonreuters.com;))