South Korean Shares Fall on Foreign Selling

The benchmark KOSPI slipped more than 1% to around 8,330 on Wednesday, reversing gains from the previous session, as persistent foreign selling continued to weigh on sentiment. The sell-off came as the Korean won remained near a 17-year low against the US dollar and overseas investors continued to reduce exposure to local equities. Chipmakers and other large-cap technology names came under pressure after an extended AI-driven rally, with investors locking in gains following another strong quarter for global semiconductor stocks. Losses were also recorded in Samsung Electronics (-4.0%), SK Hynix (-3.3%), SK Square (-4.3%), LG Energy Solution (-2.4%), Hyundai Motor (-1.4%), and SK Inc. (-9.4%). Meanwhile, South Korea’s exports surpassed $100 billion for the first time in June, driven by a near tripling in semiconductor shipments and strong AI-related demand for memory chips and server equipment, helping limit the market's losses.

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%.