South Korean Shares Fall on Profit-Taking

The benchmark KOSPI fell more than 1% to around 6,800 on Monday, reversing gains from the previous session, as investors took profits in chip stocks ahead of Nvidia's earnings this week. Samsung Electronics plunged more than 6%, while SK hynix gained nearly 2%, as investors remained cautious about the outlook for the AI-driven semiconductor rally. Additionally, rising global bond yields pressured equities, with the US 30-year Treasury yield reaching its highest level in nearly 20 years. Renewed Middle East tensions also pushed Brent crude toward $90 per barrel, raising concerns over higher inflation and keeping pressure on global risk appetite. Losses were also seen in SK Square (-1.7%), KB Financial Group (-1.6%), and Shinhan Financial Group (-1.4%). Meanwhile, Samsung Electronics' record shareholder-return plan earmarked up to KRW 110 trillion for shareholders this year, including KRW 30 trillion in third-quarter dividends, following SK hynix's KRW 40 trillion buyback.

The benchmark KOSPI rose 0.88% to close at 6,913 on Friday, extending gains from the previous session, as strength in major chipmakers and robust semiconductor exports supported investor sentiment. Samsung Electronics and SK hynix climbed 3.87% and 2.19%, respectively, amid continued expectations of shareholder returns. Strong semiconductor exports provided further support, with chip shipments nearly tripling to $26 billion in the first 20 days of August, reinforcing expectations that AI-driven demand will continue to support Korea's key technology sector. Gains were also recorded in KB Financial Group (2.63%), Shinhan Financial Group (3.17%), and SK Inc (2.99%). Meanwhile, renewed gains in US Treasury yields limited the upside, as investors grew skeptical that the Treasury's expanded bond buyback plan would provide lasting relief from elevated borrowing costs. Brent crude also rose more than 2% amid renewed US-Iran tensions, raising concerns over inflation and higher energy costs.

The benchmark KOSPI climbed 5.89% to close at 6,853 on Thursday, rebounding sharply from the previous session, as easing US Treasury yields helped restore risk appetite. The retreat in long-term Treasury yields followed the US Treasury’s announcement that it would significantly increase debt buybacks, easing concerns over rising borrowing costs that had weighed heavily on global equities. At the same time, Wall Street closed higher overnight, providing further support for Korean shares. Chipmakers led the recovery, with Samsung Electronics advancing 9.49% after a report said it plans to announce a shareholder return program exceeding KRW 100 trillion, while SK hynix jumped 12.80% following its record KRW 40 trillion share buyback and cancellation plan. The moves helped support sentiment toward Korean memory stocks and the broader market rebound. Notable gains were also seen in SK Square (11.35%), Samsung C&T (8.07%), Samsung SDI (2.77%), and SK Inc (3.63%).