South Korean Shares Drop on Profit-Taking

The benchmark KOSPI slipped 0.28% to close at 5,507 on Friday, pulling back from record highs as profit-taking and broad sector declines weighed on the index. Notable losers included SK Hynix (-0.79%), Hyundai Motor (-1.28%), LG Energy Solution (-3.54%), Hanwha Aerospace (-2.65%), and KB Financial Group (-1.96%), while Samsung Electronics (+0.90%) and Hyundai Heavy Industries (+1.11%) posted gains. Global sentiment turned cautious after major US indexes closed lower overnight, as investors questioned hardware earnings prospects amid rising memory chip prices and potential disruptions from expanding AI services. Adding to the downward pressure, foreign investors became net sellers of South Korean equities in January, unloading KRW 98 billion following a net purchase of KRW 1.52 trillion in December. Meanwhile, South Korean financial markets will be closed Monday through Wednesday for the Lunar New Year holiday and reopen on Thursday, February 19.

The benchmark KOSPI rose 0.36% to around 5,545 on Friday, building on record-high levels, supported by robust semiconductor performance and signs of economic recovery. The Ministry of Economy and Finance noted that improved domestic demand, including consumer spending, and robust exports led by the semiconductor sector have sustained the economy’s recovery for the fifth consecutive month. Notable gainers included Samsung Electronics (+0.9%), HD Hyundai Heavy Industries (+1.1%), Mirae Asset Securities (+11.8%), and Woori Financial (+1.4%), while SK Hynix (-0.79%), LG Energy Solution (-3.54%), and Hanwha Aerospace (-2.65%) weighed on the index. Shares of HD Hyundai Heavy Industries rose after the company’s 2025 net profit nearly doubled to KRW 3.67 trillion, reflecting a shipbuilding rebound and stronger affiliate earnings.

The benchmark KOSPI climbed 3.13% to close at 5,522 on Thursday, extending gains for a fourth consecutive session to a new all-time high, fueled by domestic momentum in equities. Semiconductor stocks led the gains, with Samsung Electronics rising 4.11% and SK Hynix up 3.26%, while AI-focused SK Square surged 5.64%. Financials also contributed, with Shinhan Financial gaining 3.87% and KB Financial up 0.67%. Kakao Corp also advanced, up 1.53% after its board approved reappointing CEO Chung Shin-a for two more years. The company narrowed its Q4 net loss to 39.3 billion won from 395.2 billion won a year earlier. In contrast, gains were partially restrained by overnight losses on Wall Street following the release of strong US jobs data for January. The report, combined with expectations that the Federal Reserve may hold interest rates steady, weighed on global equities. Investors are awaiting Friday’s US consumer price data for clues on the Fed’s next policy move.