South Korean Shares Rebound After 7-Day Decline

The benchmark KOSPI rose more than 3% to around 5,730 on Friday, recovering part of a seven-day decline that took the index to a six-month closing low, as bargain hunting and a rebound in global equities lifted shares. Samsung Electronics and SK hynix climbed more than 2% and nearly 3%, respectively, while other notable gainers included SK Square (3.0%), Hyundai Motor (5.3%), Hanwha Aerospace (9.0%), Kia Corporation (4.9%), KB Financial Group (2.9%), and Doosan Enerbility (2.7%). Meanwhile, persistent concerns over AI valuations, Chinese competition in memory chips, and the sustainability of AI spending continued to weigh on the semiconductor sector, limiting the broader recovery. Additionally, hotter-than-expected US producer inflation reinforced concerns over tighter monetary conditions. Elevated oil prices amid escalating Middle East attacks and risks to regional energy supplies further heightened inflation risks.

The benchmark KOSPI plunged 7.57% to close at 5,554 on Thursday, extending its losing streak to seven sessions and marking its lowest closing level since April, as mounting concerns over AI valuations and financing costs intensified the global tech sell-off. Samsung Electronics and SK hynix tumbled 9.48% and 10.85%, respectively, as investors questioned the sustainability of AI spending, tracking losses among US chipmakers. Additionally, hotter-than-expected US inflation, with annual CPI rising to 3.7% in September, fueled concerns over further Federal Reserve rate hikes, raising borrowing costs and weighing on equities. The sharp decline triggered a sell-side trading halt, while foreign investors remained net sellers. Other notable declines included SK Square (-9.86%), Samsung Electro-Mechanics (-15.50%), LG Energy Solution (-4.74%), Hyundai Motor (-5.90%), Doosan Enerbility (-8.93%), Hanwha Aerospace (-2.14%), and Kia Corporation (-2.85%).

The benchmark KOSPI fell 0.44% to close at 6,009 on Wednesday, extending its losing streak to six sessions as renewed concerns over AI spending and a weaker-than-expected sales outlook from ASML erased early gains. The Dutch chipmaking equipment supplier reported strong third-quarter earnings, but its 2026 sales forecast fell short of market expectations, despite its shares having surged 84% over the past year. The disappointing outlook weighed on investor confidence across the semiconductor sector, erasing the KOSPI’s early gains. Investors also remained cautious ahead of US inflation data, which could influence the Federal Reserve’s policy outlook. Losses were recorded in SK hynix (-1.66%), SK Square (-0.58%), Samsung Biologics (-1.99%), Samsung C&T Corp (-2.83%), KB Financial Group (-1.97%), Shinhan Financial Group (-4.71%), Doosan Enerbility (-1.14%), and Hana Financial Group (-2.25%), while Samsung Electronics ended flat.