South Korean Shares End Higher on Chip Support

The benchmark KOSPI rose 0.97% to close at 8,476 on Tuesday, recovering from the previous session as semiconductor stocks led broad-based gains. Chipmakers were supported by continued optimism over large-scale investment across Korea's semiconductor ecosystem, alongside a new 454 billion won AI server capacitor supply contract won by Samsung Electro-Mechanics, reinforcing expectations for AI infrastructure demand. Notable gainers included Samsung Electronics (4.02%), SK Hynix (2.05%), SK Square (6.59%), and Samsung Electro-Mechanics (8.05%). At the same time, global sentiment remained supportive, with Asian equities tracking Wall Street's latest gains, firmer European futures, and easing geopolitical tensions helping stabilize oil markets. For June, the KOSPI was little changed, while posting a second-quarter gain of roughly 70%.

The benchmark KOSPI edged lower to around 8,380 on Tuesday, extending losses for a third straight session, as renewed volatility in heavyweight semiconductor stocks and caution over the durability of the AI-driven rally weighed on sentiment. Foreign investors dumped a record KRW 7.7 trillion worth of local equities in the previous session, extending heavy outflows from Korean equities and adding pressure to the benchmark despite domestic buying. Domestic data also showed industrial production fell 0.3% in May, while semiconductor output declined 10% due to shipment adjustments and base effects. Decliners included SK Square (-4.0%), LG Energy Solution (-7.9%), Hanwha Aerospace (-4.0%), and SK Hynix (-2.1%). Meanwhile, optimism over the government's KRW 800 trillion semiconductor investment plan, alongside improved global risk appetite following easing Middle East tensions and overnight gains on Wall Street, helped cushion the decline. For June, the KOSPI was down more than 1%.

The benchmark KOSPI edged down 0.20% to close at 8,395 on Monday, extending losses from the previous session, as renewed uncertainty over the fragile US-Iran ceasefire lifted oil prices and dampened global risk sentiment. The United States and Iran exchanged fresh strikes over the weekend, while Iran canceled scheduled technical talks with Washington, reinforcing concerns over the ceasefire and potential disruptions to energy supplies and shipping through the Strait of Hormuz. Meanwhile, investors awaited President Lee Jae Myung's unveiling of large-scale semiconductor and AI investment plans, with Samsung Electronics and SK Group expected to announce major long-term investments aimed at strengthening South Korea's advanced technology sector. Despite the supportive policy backdrop, heavyweight chipmakers came under pressure, with Samsung Electronics and SK hynix falling 3.76% and 1.16%, respectively. Losses were also seen in SK Square (-3.84%), SK Inc (-3.68%), and LG Innotek (-2.47%).