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Kospi falls for 3rd day after Fed's rate cut

Published: 11 Dec. 2025, 17:18

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 4,110.62 points on Dec. 11, down 24.38 points, or 0.59 percent, from the previous trading session. [YONHAP]

Seoul shares closed lower Thursday as investors were divided over the U.S. Federal Reserve's latest rate-setting meeting. The won weakened against the dollar.

After choppy trading, the benchmark Kospi fell 24.38 points, or 0.59 percent, to close at 4,110.62.

Trade volume was high at 534 million shares worth 20 trillion won ($13.5 billion), with gainers outpacing losers 549 to 325.

Foreigners bought a net 346 billion won worth of local shares, and individuals scooped up a net 403 billion won. Institutions offloaded a net 771 billion won.

Following the two-day meeting, the Federal Open Market Committee decided to lower the key rate by 0.25 percentage point to the 3.5-3.75 percent range.

During a press conference, Fed Chair Jerome Powell said that the rate adjustments since September have brought the central bank's monetary policy "within a broad range of estimates of its neutral value" and that it is "well positioned to wait and see how the economy evolves."

"With the Federal Reserve limiting its rate cut to just one next year, the market felt a sense of burden," said Seo Sang-young, an analyst at Mirae Asset Securities.

Top cap Samsung Electronics fell 0.65 percent to 107,300 won, while LG Energy Solution added 1.02 percent to 446,000 won.

SK hynix sank 3.75 percent to 565,000 won after the Korea Exchange, the bourse operator, issued an investor warning for the stock following its recent sharp gains. Investors are banned from purchasing companies under the advisory through margin trading.

Builders gained ground, with Hyundai Engineering & Construction rising 2.51 percent to 73,600 won and GS Engineering & Construction increasing 1.97 percent to 19,630 won.

The local currency was quoted at 1,473 won against the greenback at 3:30 p.m., up 0.18 percent from the previous session's figure of 1,470.4.

Bond prices, which move inversely to yields, ended lower. The yield on three-year Treasurys added 0.6 basis points to 3.1 percent, and the return on the benchmark five-year government bonds gained 2.5 basis points to 3.361 percent.

Yonhap