[Alpha Biz= Reporter Kim Sangjin] Stocks of Major Korean Financial Groups Plunge Following Martial Law, KB Financial Drops Over 10%

Amid the aftermath of the martial law declaration, stocks of major domestic financial groups plummeted, with KB Financial, the leading financial group, seeing a sharp decline of more than 10% in a single day.

According to the Korea Exchange on the 5th, KB Financial closed at 85,800 KRW, a decrease of 9,600 KRW (10.06%) from the previous trading day. Other financial stocks also saw significant drops, including Shinhan Financial Group (-5.50%), Hana Financial Group (-3.25%), Woori Financial Group (-3.77%), Meritz Financial Group (-3.46%), Samsung Fire & Marine Insurance (-5.20%), Industrial Bank of Korea (-3.50%), Samsung Securities (-3.78%), and Kiwoom Securities (-5.32%).

Even the day before, financial stocks had shown a downward trend following the martial law declaration. Sector-specific changes showed that insurance (-3.69%) and finance (-3.59%) had the largest declines, while securities also dropped by -2.22%. Companies such as Hyundai Motor (-2.15%) and Kia (-4.18%), which had seen foreign buying due to dividend expectations, also weakened.

In particular, the rising won-dollar exchange rate and diminishing dividend expectations appear to have fueled foreign selling activity.

On this day, the top foreign net-sell stocks included Samsung Electronics (3.44 trillion KRW), KB Financial (1.43 trillion KRW), Shinhan Financial Group (582 billion KRW), Kia (253 billion KRW), and Hana Financial Group (245 billion KRW).

 

 

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