South Korean shares fell sharply on Thursday, led by steep declines in technology stocks as escalating Middle East tensions took a toll on investor sentiment. Market heavyweights Samsung Electronics (KRX:005930) and SK Hynix (KRX:000660) led the losses with declines of nearly 9% and 12%, respectively.
The Korea Composite Stock Price Index, or Kospi, decreased by 463.81 points, or 6.4%, to end at 6,820.6. The Kosdaq also fell by 37.59 points, or 4.5%, to close at 791.84.
In economic news, the Bank of Korea raised its benchmark interest rate by 25 basis points to 2.75% from 2.50%, according to a Thursday press release.
This rate increase is the first by the South Korean central bank in 3.5 years.
Bank of Korea data indicates that foreign investors pulled a record $30.7 billion from Korean securities, including stocks and bonds, during June. The withdrawal represented the fifth consecutive month of net portfolio outflows, dating back to February.
The outflow value in June was the second largest on record, after a $36.55 billion outflow in March, and was equivalent to about 47.6 trillion won based on the end-June exchange rate of 1,548.7 won per U.S. dollar.
In corporate news, DL Holdings (KRX:000210) was selected as the preferred bidder for the Pyeongtaek Godeok A-69BL and A-71BL integrated public housing project, commissioned by Korea Land and Housing Corporation, according to a Thursday filing with the Korea Exchange.
The project has an estimated construction value of 216.9 billion won, including the value added tax. The estimate represents DL Holdings' 33% share of the total contract value of 657.2 billion won, the filing said.
Under the project, DL Holdings will build an integrated public housing complex of 1,995 rental and for-sale apartment units, along with related amenities and welfare facilities
Shares of the company fell by 1% at market close.
In other news, Hanwha Ocean (KRX:042660) secured an order for the construction of two very large crude carrier (VLCC) vessels worth 394.3 billion won from an unnamed North American shipper, according to a Wednesday filing with the Korean Exchange.
Delivery is expected by March 31, 2030, with payments tied to construction milestones.
Shares of Hanwha Ocean rose nearly 6% at market close.