Korean Stock Market Faces Sell-Off Amid Foreign Selling Pressure

Korean stocks experienced a significant sell-off, with the KOSPI falling 20.7 percent over seven sessions before rebounding 2.05 percent on Friday. David Chung, an Asia equity manager, noted that foreign investors have sold a net 200 trillion won ($149.4 billion) in Korean equities this year.

The market is struggling to regain momentum as a shrinking pool of buyers struggles to absorb foreign selling pressure. The National Pension Service, a major market participant, expanded its permitted allocation range and did not sufficiently reduce its stock exposure near the peak.