Seoul's stock market closed higher on Thursday following the US Federal Reserve's first interest rate cut in over four years, which was well received by investors. However, the Korean won weakened against the US dollar. The Korea Composite Stock Price Index (Kospi) increased by 0.21 percent to reach 2,580.80 points, with trading volume at 378.78 million shares valued at 12.6 trillion won ($9.5 billion). Gainers outnumbered decliners, with 497 stocks rising compared to 371 falling. The Fed's decision to lower the overnight lending rate to a range of 4.75 percent to 5 percent was driven by easing inflation levels compared to two years ago. The promise of further rate cuts lifted investor confidence, although concerns about a potential economic recession arose due to US stocks closing lower. Foreign investors sold more stocks than institutions and individuals purchased, with tech stocks in Seoul, such as Samsung Electronics and SK hynix, experiencing declines. Conversely, Hyundai Motor, Korean Air, and SK Innovation were among the gainers in the market. The Korean won traded at 1,329 won against the dollar, showing a slight increase from the previous session.