South Korean Shares Drop Ahead of Fed Decision

2025-12-09 02:39 By Erika Ordonez 1 min. read

The benchmark KOSPI fell 0.27% to close at 4,144 on Tuesday, reversing gains from previous sessions, as investors turned cautious ahead of the US Federal Reserve rate decision.

Sentiment softened after Wall Street’s pullback, with traders positioning defensively ahead of the Fed’s December 10 meeting, where another rate cut is expected.

Pressure also came from the semiconductor sector after the Korea Exchange issued its second “investment caution” warning on SK Hynix, following the stock’s rapid rise amid the AI-driven memory boom.

The notice signaled investors to proceed with caution, and shares fell as much as 1.7% in early trade.

SK Hynix has seen its stock soar around 230% this year, prompting concerns about a tech bubble and dampening broader tech sentiment.

Losses were notable in SK Hynix (-1.91%), Samsung Electronics (-0.82%), LG Energy Solution (-1.77%), Hyundai Motor (-2.54%), KB Financial Group (-1.41%), and Kia Corporation (-1.43%).



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