South Korean financial markets and investor allocations came under pressure as a sharp U.S. Treasury selloff drove the 10-year yield above 5.2%, strengthening the dollar and weighing on Korean bonds, the won and equities. The three-year South Korean Treasury yield rose 0.113 percentage points to 4.119%, its highest level since Nov. 8, 2022, while the won closed at 1,365.10 per dollar on Sept. 28 and foreign investors sold 3 trillion won ($2.2 billion) of South Korean stocks. The KOSPI stood at 6,856.41, down 0.48%, and the KOSDAQ fell 0.52% to 842.17 on Sept. 29. Korean retail investors, known as Seohak ants, cut net U.S. stock purchases from $4.6424 billion in July to $1.9623 billion in August and $622.02 million as of the 28th of the month, while U.S. bond purchases rose to $1.8213 billion in August and $1.2561 billion as of the 28th. Inflation concerns, higher oil prices, fiscal risks, technology-company bond issuance and the prolonged U.S.-Iran conflict heightened risk aversion. The Bank of Korea said it would closely monitor domestic financial and foreign-exchange volatility, while analysts cautioned that rising yields can reduce bond prices before maturity.