South Korean Shares Fall on Tech Selloff

The benchmark KOSPI fell nearly 5% to around 6,285 on Thursday, reversing gains from the previous session, as a selloff in global technology stocks weighed heavily on semiconductor shares. SK Hynix and Samsung Electronics declined sharply by roughly 5% and 8%, respectively, after the Nasdaq retreated overnight amid profit-taking in major tech names. Losses were also recorded in SK Square (-10.2%), Hyundai Motor (-1.6%), HD Hyundai Heavy Industries (-1.2%), LS Electric (-3.8%), SK Inc (-9.1%), and LG Electronics (-2.5%). Limiting broader losses, South Korea reported a record current account surplus of $49.73 billion in June, driven by strong semiconductor exports that reinforced the country's export outlook. At the same time, reports of progress toward an interim transit arrangement between Iran and Oman eased concerns over disruptions to shipping through the Strait of Hormuz, supporting global risk sentiment.

The benchmark KOSPI rose 3.76% to close at 6,598 on Wednesday, extending gains from the previous session as hopes for a US-Iran agreement boosted risk appetite. Optimism that Washington and Tehran could reach a deal to reopen the Strait of Hormuz drove oil prices sharply lower, easing concerns over energy supply disruptions and inflation. The improvement in global sentiment lifted Wall Street to record highs overnight, with technology shares leading the advance after strong earnings from major US companies renewed confidence in AI-related spending, fueling a rebound in semiconductor stocks. Samsung Electronics gained 3.13%, while SK Hynix surged 6.72%. Other notable performers included SK Square (6.23%), Hyundai Motor (3.31%), LG Energy Solution (1.37%), Kia Corporation (2.85%), and HD Hyundai Heavy Industries (4.97%).

The benchmark KOSPI rose 1.62% to close at 6,359 on Tuesday, recovering part of the previous session's losses as investors returned to beaten-down stocks. Overnight gains on Wall Street also supported sentiment, with strong earnings from Amazon and advances in major AI-related technology stocks boosting risk appetite. Samsung Electronics and SK hynix edged higher by 0.21% and 0.64%, respectively, while other gainers included SK Square (3.41%), LG Energy Solution (3.96%), HD Hyundai Heavy Industries (2.66%), and Hanwha Aerospace (9.25%). Meanwhile, investors remained cautious amid lingering uncertainty over AI-related valuations following the recent tech-led selloff. Conflicting signals over US-Iran negotiations also capped broader gains. Separately, South Korea's softer-than-expected inflation eased immediate price concerns, though firmer core inflation reinforced expectations for a cautious Bank of Korea policy stance.