South Korean Shares Slump on Tech Selloff

The benchmark KOSPI declined 8.29% to close at 7,484 on Monday, extending losses for a third straight session to an over two-week low, as a sharp selloff in global technology stocks and renewed geopolitical tensions fueled risk aversion. Sentiment was pressured by heavy losses on Wall Street, where semiconductor shares led a broad market decline following stronger-than-expected US jobs data that reinforced concerns the Federal Reserve may keep interest rates higher for longer. Additional pressure came from escalating Middle East tensions after reports that Iran launched missiles at Israel, raising fears that a fragile ceasefire could unravel. Samsung Electronics (-10.18%) and SK hynix (-7.25%) led the retreat, alongside SK Square (-11.13%), Hyundai Motor (-9.43%), and LG Energy Solution (-6.40%). However, Nvidia announced a multi-year AI partnership with SK hynix and expanded AI ties in Korea, reinforcing expectations for sustained demand for advanced memory chips.

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%).

The benchmark KOSPI fell 1.84% to close at 8,639 on Thursday, retreating from record highs and tracking overnight losses on Wall Street as escalating tensions between the US and Iran weighed on investor sentiment. Iran struck Kuwait International Airport and Israel signaled that it, together with the US, was prepared to launch further strikes against Iran if necessary, driving oil prices higher and raising inflation risks. The decline also reflected profit-taking following the index's extraordinary AI-driven rally, with investors turning cautious amid elevated market volatility and growing concerns about stretched valuations. Technology heavyweights Samsung Electronics (-2.08%) and SK Hynix (-3.22%) both traded lower, alongside Hyundai Motor (-3.84%), LG Energy Solution (-4.07%), LG Electronics (-16.18%), and Kia Corp (-2.55%). Still, losses were limited by chip-sector optimism after Goldman Sachs raised its 12-month KOSPI target to 12,000, citing robust AI-driven earnings growth.