South Korean Shares Close Higher

The benchmark KOSPI rose 0.46% to close at 6,820 on Monday, reversing part of the previous session's losses as Samsung Electronics and SK hynix rebounded, alongside gains across other large-cap stocks. Samsung Electronics increased 1.17% and SK hynix advanced 1.27%, while SK Square (0.88%), Hyundai Motor (1.00%), LG Energy Solution (2.16%), KB Financial Group (0.99%), and Kia Corporation (2.34%) also posted gains. The market also remained supported by expectations for another month of strong semiconductor-led export growth, with August shipments forecast to rise more than 60% year-on-year. The KOSPI was on course for a gain of over 3% for the month of August. Meanwhile, renewed concerns over US interest rates following hawkish comments from Federal Reserve Chair Kevin Warsh kept investors cautious. At the same time, escalating Middle East tensions following renewed US strikes near the Strait of Hormuz added to risk concerns.

The benchmark KOSPI fell more than 2% to around 6,640 on Monday, extending losses from the previous session, as renewed US-Iran tensions fueled concerns over higher oil prices and broader risk-off sentiment. US forces struck Iranian rocket launchers near the Strait of Hormuz, pushing Brent crude higher and weighing heavily on Asian equities. At the same time, hawkish comments from Federal Reserve Chair Kevin Warsh reinforced expectations for a September rate hike, pushing US Treasury yields higher and adding pressure on risk assets, particularly technology shares. Meanwhile, stronger domestic fundamentals offered some cushion, with July facility investment rising 7.5% month-on-month and electronic-component output jumping 20.7%, supported by robust semiconductor demand. Among major decliners were Samsung Electronics (-2.7%), SK hynix (-3.5%), SK Square (-2.5%), Hanwha Aerospace (-1.4%), and Doosan Enerbility (-6.6%).

The benchmark KOSPI fell 1.79% to close at 6,789 on Friday, snapping a three-day rally, as investors sold off technology heavyweights and remained cautious ahead of Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole symposium. The decline came despite a strong overnight session on Wall Street, following Nvidia’s stronger-than-expected earnings and upbeat revenue outlook. Korean chipmakers failed to track the gains, with Samsung Electronics and SK hynix falling 2.82% and 3.87%, respectively, as reports that Washington could be weighing a new round of semiconductor tariffs raised concerns about the outlook for Korea’s key export industry. At the same time, Samsung Biologics plunged 6.78% after announcing plans to raise KRW 3 trillion through a rights offering, adding further pressure to the index. Notable losses were also recorded in SK Square (-3.09%), HD Hyundai Heavy Industries (-2.77%), SK Inc (-2.34%), and LS Electric (-2.28%).