South Korean Shares Plunge Near 2-Month Low

The benchmark KOSPI climbed more than 5% to around 6,830 on Thursday, rebounding sharply from the previous session’s 5.8% plunge as easing US Treasury yields helped restore risk appetite. The retreat in long-term Treasury yields followed the US Treasury’s announcement that it would significantly increase debt buybacks, easing concerns over rising borrowing costs that had weighed heavily on global equities. At the same time, Wall Street closed higher overnight, with the S&P 500 and Nasdaq advancing, providing further support for Korean shares. Chipmakers led the recovery, with Samsung Electronics rising around 7% and SK hynix jumping nearly 11% after announcing a record KRW 40 trillion share buyback and cancellation plan, which is expected to enhance shareholder returns and support its valuation. Other notable performers included SK Square (6.9%), LG Energy Solution (2.2%), Samsung C&T (5.3%), Samsung SDI (5.3%), Celltrion (2.2%), LG Electronics (1.2%), and SK Inc (4.7%).

The benchmark KOSPI fell 5.80% to close at 6,471 on Wednesday, extending losses from the previous session, as a global bond selloff weighed on investor sentiment. The US 30-year Treasury yield climbed to its highest level since 2007, while long-term bond yields also reached multi-year highs in Japan and Europe, raising concerns over higher borrowing costs and pressuring growth and technology stocks. The global technology selloff hit Korean chipmakers particularly hard, with Samsung Electronics and SK hynix plunging 7.54% and 9.93%, respectively, tracking losses in US semiconductor stocks. Losses were also recorded in SK Square (-11.54%), Hyundai Motor (-5.17%), KB Financial Group (-1.72%), Kia Corporation (-3.21%), and HD Hyundai Heavy Industries (-3.06%). At the same time, higher oil prices added to inflation concerns after President Donald Trump said the US is not in talks with Iran, while stalled peace efforts raised fears of further disruptions to oil supplies from the Middle East.

The benchmark KOSPI fell 1.55% to close at 6,870 on Tuesday, snapping a five-day rally, as fading hopes for a US-Iran deal prompted profit-taking following a sharp semiconductor-led rally. Foreign investors remained net buyers of Korean equities, while retail investors and institutions sold, suggesting the pullback was driven more by profit-taking than a broad retreat from Korean assets. Samsung Electronics slipped 2.00%, along with notable losses in SK Square (-2.17%), Hyundai Motor (-4.42%), LG Energy Solution (-5.01%), Hanwha Aerospace (-1.29%), Kia Corporation (-3.39%), HD Hyundai Heavy Industries (-4.12%), and Doosan Enerbility (-5.57%). Additionally, renewed uncertainty over the US-Iran agreement pushed oil prices higher and revived inflation concerns, while elevated Treasury yields added to pressure on global risk appetite. Ongoing US-Korea trade negotiations over the planned US$200 billion investment commitment also remained a source of uncertainty for Korean exporters.