South Korean Shares Edge Higher

The benchmark KOSPI rose 0.5% to around 6,840 on Tuesday, edging higher after hitting an over two-month low in the previous session as bargain hunting emerged following a sharp selloff in AI-related chipmakers. Heavyweight technology stocks led the recovery, with Samsung Electronics and SK Hynix advancing 5.5% and 4.1%, respectively, after plunging nearly 11% and a record 15% in the previous session. Other notable gainers included SK Square (2.2%), LS Electric (2.8%), and Hyosung Heavy Industries (1.1%). However, gains remained limited as investors continued to monitor heightened Middle East tensions after the US reinstated a blockade of Iranian ports and President Donald Trump announced a 20% charge on cargo passing through the Strait of Hormuz, lifting oil prices and weighing on global risk sentiment. Investors also looked ahead to earnings reports from major chipmakers and large US technology companies for fresh signals on AI demand and capital spending plans.

The benchmark KOSPI plunged 8.95% to close at 6,807 on Monday, hitting its lowest level since late April, as renewed US-Iran military strikes and a surge in oil prices dampened global risk appetite. Tehran claimed it had closed the Strait of Hormuz, raising concerns over potential disruptions to oil shipments. The selloff was led by technology shares, with SK Hynix (-15.46%) tumbling as investors locked in profits following its Nasdaq debut on Friday, while analysts cited easing optimism over near-term earnings and slower-than-expected HBM4 shipment growth. Samsung Electronics (-10.53%), SK Square (-17.67%), Samsung Electro-Mechanics (-19.07%), and Hyundai Motor (-3.61%) also declined. Broader sentiment toward South Korea's semiconductor sector remained fragile after the KOSPI shed almost 8% last week. Meanwhile, the Bank of Korea said the AI-driven chip supercycle remains intact, citing continued supply constraints and robust global demand for advanced memory chips.

The benchmark KOSPI rose 2.52% to close at 7,476 on Friday, extending gains from the previous session as chipmakers tracked an overnight rally in global semiconductor stocks. Tech shares led the advance, with Samsung Electronics climbing 2.88%, while Samsung Electro-Mechanics advanced 6.10%. Other notable performers included SK Square (5.88%), Hyundai Motor (3.14%), LG Energy Solution (4.31%), KB Financial Group (8.05%), Doosan Enerbility (6.97%), and Kia Corporation (1.66%). Investor confidence was also supported by easing oil prices despite renewed US-Iran tensions, as reports that Iran sought negotiations helped ease concerns about prolonged supply disruptions and inflationary pressures. Additionally, President Lee Jae Myung and Mongolian President Ukhnaa Khurelsukh agreed to deepen cooperation in critical minerals, trade, and advanced technologies, reinforcing optimism over South Korea's long-term supply chain security and high-tech industries.