Employees work at the Hana Bank trading room in central Seoul, on Oct. 12.YONHAP
Stocks plunged more than 3 percent Monday, extending their losing streak to a fourth session, as a massive sell-off in technology stocks fueled by inflation concerns weighed on the market amid elevated oil prices.
The Korean won strengthened against the dollar.
After opening 0.07 percent lower, the benchmark Kospi extended losses to close down 241.69 points, or 3.65 percent, at 6,384.24.
Trade volume was moderate at 313 million shares worth 21.33 trillion won ($16 billion), with losers outnumbering winners 717 to 166.
Institutions and foreigners sold a net 110.65 billion won and 2.02 trillion won worth of stocks, respectively, while individuals bought a net 1.47 trillion won.
"The Kospi plunged amid rebalancing of semiconductor-focused exchange-traded funds and concerns that Samsung Electronics and SK hynix may have completed their treasury stock purchases," Lim Seung-mi, an analyst at Hana Securities said in her research note.
Logos of Korean chipmakers Samsung Electronics, left, and SK hynixYONHAP
Oil prices rose amid escalating tensions in the Middle East following renewed Houthi attacks on Saudi Arabia's main airport over the weekend.
A broader regional conflict could further disrupt energy supplies, adding to inflationary pressures and complicating the Federal Reserve's efforts to bring inflation under control, analysts said.
In Seoul, tech stocks led the decline.
Market behemoth Samsung Electronics fell 4.39 percent to 250,500 won, and its chipmaking rival SK hynix declined 4.52 percent to 1.6 million won.
Defense giant Hanwha Aerospace dropped 3.25 percent to 862,000 won, and top carmaker Hyundai Motor shed 1.39 percent to 320,000 won.
Among gainers, shipping firm HMM rose 4.81 percent to 21,800 won and dominant tobacco company KT&G climbed 1.58 percent to 180,200 won.
The Korean won strengthened against the greenback from the previous session to trade at 1,335.1 won against the dollar as of 3:30 p.m.
