South Korean shares slump 7% on renewed selling in chipmakers, c.bank hikes rates
South Korean shares fell 7% on Thursday, driven by renewed selling in chipmaker stocks, as the Bank of Korea raised its interest rate by 25 basis points to 2.75% for the first time in over three years. The benchmark KOSPI index dropped 502.44 points, erasing previous gains, while major chipmakers like SK Hynix and Samsung Electronics saw declines of 11.7% and 8.9%, respectively. This rate hike aims to stabilize the won, which has weakened approximately 3% against the U.S. dollar this year.