KOSPI Collapses Around 2,490 On 'Cell Korea'The won-dollar exchange rate once reached 1,438 won.

The won-dollar exchange rate rose to 1,438 won at one point

KOSPI Collapses Around 2,490...2,488.97 Close 0.2% Down

"Foreign selling grows ahead of U.S. Fed's rate decision"

[Anchor]
The KOSPI, which had been rising for four consecutive days despite the shock of 'emergency martial law', fell behind the intensifying foreign selling during the day, giving up the 2,490 mark.

Foreign selling grew out of caution ahead of the U.S. policy rate decision this week, and the won-dollar exchange rate also rose to 1,438 won at one point.

Reporter Ryu Hwan-hong reports.

[Reporter]
The KOSPI, which had seemed to be rising for five consecutive days, fell below the 2,500-point mark during the day, eventually closing at 2,488.97.

Foreigners who net sold for five consecutive days increased their net selling by more than 470 billion won during the day, leading the KOSPI to fall for the first time in five days.

The market analyzed that foreign investors were wary ahead of the U.S. Federal Reserve's policy rate decision on the 18th.

[Heo Jae-hwan / Managing director of Eugene Investment & Securities: Even if the Fed cuts interest rates, the rate will be relatively frozen from January, and the overall pace of rate cuts will slow down. The weak won and the strong dollar have increased the selling pressure of foreign investors..]

On the KOSDAQ market, foreigners net sold more than 100 billion won, but individuals netted more than 200 billion won, leading the index to rise for the fifth day.

Foreign selling affected the won-dollar exchange rate, pushing the exchange rate, which started at early 1,430 won, to 1,438.2 won, close to 1,440 won at one point.

Rising exchange rates have not only encouraged foreign investors to sell stocks, fearing foreign exchange losses, but also weighed on import prices, the domestic economy and facility investment.

[Seo Jeong-hoon / Senior Researcher at Hana Bank: We believe that a decrease in foreign confidence could increase the cost of foreign currency financing for domestic exporters, resulting in a vicious cycle of sluggish investment and falling growth]The market's view of the exchange rate is unsettling as it cannot be ruled out that the exchange rate fluctuated by the

{the martial shock} will fluctuate again following the Fed's rate decision.

I'm YTN's Ryu Hwan Hong.

Reporter for shooting
: Kwon Seok-jae