South Korean Shares Slide on Tech Selloff

2026-07-07 01:46 By Erika Ordonez 1 min. read

The benchmark KOSPI fell nearly 4% to around 7,730 on Tuesday, extending losses from the previous session, as investors took profits in heavyweight technology stocks following a strong AI-driven rally.

Technology shares remained under pressure as investors grew more cautious toward the AI trade amid recent weakness in global semiconductor stocks and concerns over whether robust earnings can justify lofty valuations.

Samsung Electronics (-6.8%) tumbled despite reporting record preliminary second-quarter earnings that beat expectations, with the strong results largely seen as priced in, while SK Hynix (-5.9%) declined ahead of its planned US listing.

Additionally, battery stocks weakened after LG Energy Solution (-6.4%) posted quarterly operating profit well below forecasts, reinforcing concerns over sluggish global EV demand.

Other major decliners included SK Square (-8.4%), Hyundai Motor (-5.3%), HD Hyundai Heavy Industries (-4.5%), Hanwha Aerospace (-3.9%), and Kia Corp (-4.6%).



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South Korean Shares Slide on Tech Selloff
The benchmark KOSPI fell nearly 4% to around 7,730 on Tuesday, extending losses from the previous session, as investors took profits in heavyweight technology stocks following a strong AI-driven rally. Technology shares remained under pressure as investors grew more cautious toward the AI trade amid recent weakness in global semiconductor stocks and concerns over whether robust earnings can justify lofty valuations. Samsung Electronics (-6.8%) tumbled despite reporting record preliminary second-quarter earnings that beat expectations, with the strong results largely seen as priced in, while SK Hynix (-5.9%) declined ahead of its planned US listing. Additionally, battery stocks weakened after LG Energy Solution (-6.4%) posted quarterly operating profit well below forecasts, reinforcing concerns over sluggish global EV demand. Other major decliners included SK Square (-8.4%), Hyundai Motor (-5.3%), HD Hyundai Heavy Industries (-4.5%), Hanwha Aerospace (-3.9%), and Kia Corp (-4.6%).
2026-07-07
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.
2026-07-06
South Korean Shares Extend Gains Ahead of Key Earnings
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.
2026-07-06