Seoul Shares Drop for Second Day Amid Market Concerns

Intermediate | October 22, 2025

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Markets Wobble: Seoul Shares Drop for Second Day

On October 14, 2025, the KOSPI (Korea’s benchmark stock index) fell for the second straight day, closing down 22.74 points (‑0.63 %) at 3,561.81. The tech‑heavy KOSDAQ also slipped 1.46 % to 847.96. Meanwhile, the South Korean won weakened against the U.S. dollar by about 5.2 won, hitting around 1,431 won per USD. (world.kbs.co.kr)

Investor jitters were linked to renewed trade frictions between the United States and the People’s Republic of China, including China’s announcement that it would sanction five U.S. subsidiaries of the Korean shipbuilder Hanwha Ocean. (world.kbs.co.kr)

Why “Seoul Shares Drop for Second Day” Matters for Business‑Minded Readers

The headline “Seoul shares drop for second day” reflects a shift in market sentiment — how investor confidence, not just earnings, drives performance.
The fall in share prices and the weak won underline how trade tensions between the U.S. and China can impact South Korea’s export‑oriented economy.
For English learners: this story shows how to talk about market trends and currency movements in clear, professional English.
In meetings, you could summarise: “Seoul shares dropped for a second day amid trade concerns, showing cautious investor sentiment and pressure on the won.”

Inside the Market Reaction: Why Seoul Shares Drop for Second Day

The decline came despite a positive start — the KOSPI opened higher on solid earnings from Samsung Electronics. (world.kbs.co.kr) However, renewed China‑U.S. friction and sanctions on Korean shipbuilding interests quickly erased gains. (world.kbs.co.kr)

Currency weakness compounded the market pressure, as the won fell against the U.S. dollar. For exporters, this can be a mixed blessing — it improves competitiveness abroad but raises import costs and volatility risk.

What Lies Ahead & What to Watch

Keep an eye on U.S.–China trade developments: further escalation could deepen the decline as Seoul shares drop for second day and beyond.
Watch export‑oriented sectors like tech, shipbuilding, and autos — they are particularly sensitive to trade policy shocks.
Korean firms may adjust strategies: hedging currency risk, diversifying markets, or delaying investments.
From an English‑learning view, articles like this are excellent for studying financial tone, transitions, and business reporting style.

Vocabulary

Benchmark (noun) – a standard against which performance is measured.
Example: “The KOSPI is the benchmark index of South Korean stocks.”
Jittery (adjective) – nervous or anxious.
Example: “Investors became jittery when trade tensions flared up.”
Sentiment (noun) – the overall feeling or attitude of a group (e.g., investors).
Example: “Market sentiment turned cautious after the sanctions announcement.”
Risk appetite (noun) – the level of risk an investor is willing to accept.
Example: “A weaker risk appetite led to selling in Korean equities.”
Currency depreciation (noun) – when a currency loses value compared to others.
Example: “The won saw depreciation against the U.S. dollar.”
Export‑oriented (adjective) – depending heavily on international sales.
Example: “South Korea’s export‑oriented economy is sensitive to global trade shocks.”
Sanction (noun) – a penalty or restriction imposed by one country on another.
Example: “China imposed sanctions that weighed on investor confidence.”
Momentum (noun) – the force gained by a moving object or trend.
Example: “The rally lost momentum after the trade news.”
Hedge (verb) – to protect against financial risk.
Example: “Firms may hedge currency risk to manage exposure.”
Ripple effect (noun) – a spreading and indirect effect of an event.
Example: “Trade tension can have a ripple effect across global markets.”

Discussion Questions (About the Article)

What triggered the stock‑market drop in Seoul, according to the article?
How did currency movement reflect investor concerns in Korea?
Which sectors might feel the biggest impact of this market slide and why?
If you were advising a Korean export company, what precautionary steps might you suggest now?
Why do markets sometimes fall based on sentiment rather than fundamentals?

Discussion Questions (About the Topic)

How do trade tensions between major economies affect smaller export nations like South Korea?
What does a second‑day drop in Seoul shares suggest about investor confidence?
How can companies manage risks related to currency and global trade policies?
What language expressions are useful when summarising market trends in business English?
How might geopolitical news influence business decisions in your country?

Related Idiom or Phrase

“On shaky ground” – being in a dangerous, unstable or uncertain situation.
Example: “Amid trade tensions and a weakening won, Korean markets remained on shaky ground as Seoul shares drop for second day.”

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This article was inspired by: KBS World