South Korean Shares Slide on Chip Selloff

2026-06-05 01:37 By Erika Ordonez 1 min. read

The benchmark KOSPI declined 5.54% to close at 8,161 on Friday, extending losses for a second straight session and heading for its steepest weekly drop since late March amid a global semiconductor selloff.

Chip stocks came under heavy pressure after disappointing results from Broadcom triggered a broad pullback in semiconductor shares worldwide.

Sentiment was further pressured by escalating Middle East tensions after Hezbollah rejected a new ceasefire proposal in Lebanon and Israel signaled it would maintain its military presence, undermining efforts to advance a broader peace agreement involving Iran.

This fueled risk aversion and concerns over potential disruptions to energy markets.

Investors also continued to lock in profits following the market's recent record-setting rally, while foreign funds remained heavy net sellers.

Samsung Electronics (-6.12%) and SK Hynix (-9.49%) led losses, alongside SK Square (-7.42%), LG Energy Solution (-2.13%), and Hyundai Mobis (-6.42%).



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