South Korea's benchmark stock index KOSPI fell 3.9% to close at 3119.41 points on Friday, the biggest one-day decline since April 7 this year. Large-scale sell-offs between institutional investors and foreign investors became the main reason for the decline in the market. Kim Jong-youn, an analyst at NH Investment Securities, said that Seoul's new left-leaning government's proposed tax increase plan to raise the stock transaction tax has dampened market sentiment. Chip and defense stocks led the decline: Samsung Electronics, a major stock, fell 3.5%; memory chip maker SK Hynix fell 5.7%, ending three consecutive gains; ammunition manufacturer Poongsan plummeted 16%; and self-propelled artillery and aero engine manufacturer Hanwha Aerospace fell 5.7%.

South Korea's benchmark stock index KOSPI fell 3.9% to close at 3119.41 points on Friday, the biggest one-day decline since April 7 this year. Large-scale sell-offs between institutional investors and foreign investors became the main reason for the decline in the market. Kim Jong-youn, an analyst at NH Investment Securities, said that Seoul's new left-leaning government's proposed tax increase plan to raise the stock transaction tax has dampened market sentiment. Chip and defense stocks led the decline: Samsung Electronics, a major stock, fell 3.5%; memory chip maker SK Hynix fell 5.7%, ending three consecutive gains; ammunition manufacturer Poongsan plummeted 16%; and self-propelled artillery and aero engine manufacturer Hanwha Aerospace fell 5.7%.