EWY is trading 4.6% down today after the Bank of Korea unexpectedly raised interest rates by 25 basis points to 2.75%.
- The surprise hike triggered a sharp selloff in the KOSPI index, with major technology leaders like Samsung and SK Hynix facing significant downward pressure.
- Higher domestic interest rates and a broader global tech downturn are accelerating foreign outflows from South Korean equities.
- Investor sentiment has turned risk-off as the market reacts to the tightening monetary policy and its potential impact on the export-heavy economy.