South Korean Shares Plunge on Tech Selloff

The benchmark KOSPI plunged more than 8% to around 6,210 on Tuesday, retreating to an over three-month low, as a deepening global semiconductor selloff battered heavyweight chipmakers and fueled broad risk aversion. SK Hynix tumbled over 10% after its US-listed shares fell below their IPO price, while Samsung Electronics slid more than 9%, tracking another decline in US chip stocks amid growing concerns that hyperscalers could rein in AI infrastructure spending. The selloff also dragged down other major shares, including SK Square (-11.8%), Hyundai Motor (-6.8%), LG Energy Solution (-4.7%), HD Hyundai Heavy Industries (-6.3%), and Kia Corporation (-5.0%). Meanwhile, renewed concerns over rising competition from China's memory chip sector added further pressure to Korean semiconductor stocks. Investors also remained cautious ahead of earnings from major US technology companies and the Federal Reserve's policy decision later this week.

The benchmark KOSPI rose 0.97% to close at 6,756 on Monday, recovering part of the previous session's losses as optimism over major AI cooperation agreements boosted technology shares. Investor sentiment improved after South Korean firms announced a series of AI partnerships with global technology companies, involving about $950 billion worth of projects, highlighted by a $750 billion long-term semiconductor supply deal between SK Group and Nvidia and Nvidia's $1 billion investment in Naver. Samsung Electronics and SK Hynix led the advance, rising 1.80% and 3.24%, respectively, alongside gains in Naver (8.43%), LG Energy Solution (1.06%), Samsung Biologics (1.78%), LG Electronics (1.83%), Hanwha Ocean (1.02%), and HD Korea Shipbuilding (1.75%). Additionally, easing geopolitical tensions supported risk appetite after the US halted strikes on Iran over the weekend, sending oil prices sharply lower.

The benchmark KOSPI fell more than 1% to around 6,620 on Monday, extending losses from the previous session as weakness in US technology stocks continued to weigh on investor sentiment. The decline followed another selloff on Wall Street, with investors staying cautious ahead of major US technology earnings and this week's Federal Reserve policy decision, which could offer fresh clues on AI spending and interest rates. Samsung Electronics (-0.7%), SK Hynix (-1.4%), SK Square (-4.9%), Hyundai Motor (-1.1%), and Hanwha Aerospace (-7.7%) were among the notable decliners. Meanwhile, easing geopolitical tensions after the US paused strikes on Iran over the weekend pushed oil prices sharply lower and improved global risk sentiment. Markets also found support from a series of AI cooperation agreements between South Korean firms and global technology companies, including a long-term semiconductor supply deal involving SK Group and Nvidia, as well as Nvidia's investment in Naver.