South Korean Shares Fall as Chip Stocks Retreat

The benchmark KOSPI fell 0.46% to close at 8,051 on Monday, reversing gains from the previous session as technology stocks retreated amid renewed AI valuation concerns. Markets assessed whether heavy AI infrastructure spending would continue translating into strong profits following the sector's recent rally. Additionally, foreign and institutional investors accelerated selling, fueling a broad-based market decline as they locked in profits after the index's strong gains this year. Samsung Electronics gained 2.75% on optimism ahead of its second-quarter earnings, while SK hynix tumbled 3.38% ahead of its planned $29 billion Nasdaq depositary receipt listing. Losses were also seen in SK Square (-5.92%), LG Energy Solution (-2.21%), and Hanwha Aerospace (-1.36%). Meanwhile, President Lee Jae Myung instructed officials to swiftly implement major AI and semiconductor projects announced last week, underscoring the government's continued support for the sector.

The benchmark KOSPI rose 1% to around 8,170 on Monday, extending gains from the previous session as technology stocks advanced ahead of key corporate earnings. Investors looked ahead to Samsung Electronics' highly anticipated second-quarter results, which are expected to provide fresh confirmation of robust AI-driven memory chip demand and pricing following recent volatility in global semiconductor shares. US stock futures also advanced despite lingering concerns over AI-related valuations, improving global risk sentiment. Samsung Electronics climbed 3.4%, while SK hynix rose 1.3%. Other notable gainers included SK Square (3.3%), Hyundai Motor (2.4%), HD Hyundai Heavy Industries (2.4%), Kia Corporation (5.5%), and KB Financial Group (2.1%). Sentiment also remained underpinned by the government's continued support for AI and semiconductor development, including plans to launch a future-growth fund financed by semiconductor tax revenue and accelerate AI adoption across the economy.

The benchmark KOSPI rose 5.76% to close at 8,088 on Friday, rebounding from the previous session as bargain hunting lifted heavyweight semiconductor shares. Samsung Electronics and SK hynix rebounded 8.74% and 11.32%, respectively, after suffering sharp declines a day earlier, helping lift the index despite continued weakness in global chip shares. Other gainers included SK Square (4.52%), Hyundai Motor (2.07%), LG Energy Solution (2.40%), Hanwha Aerospace (3.94%), Shinhan Financial Group (5.09%), and Kia Corporation (4.41%). At the same time, Samsung Electronics remained in focus after reports that AI startup Anthropic is in talks with the company to develop custom AI chips, lending additional support to the semiconductor sector. Sentiment was also supported by weaker-than-expected US June jobs data, which strengthened expectations that the Federal Reserve could ease monetary policy in the coming months, boosting broader risk appetite.