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[BUSINESS] · South Korea · 36 sources

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South Korean stock markets slump as tech giants and foreign selling drive losses

South Korean equity markets experienced a significant downturn as the KOSPI and KOSDAQ indices fell sharply. The KOSPI closed at 6,384.24, a 3.65 percent decrease, marking its largest decline in approximately one month. The KOSDAQ also saw a substantial drop of 4.83 percent, closing at 849.19.

Major semiconductor companies led the decline. Samsung Electronics shares fell 4.39 percent to 250,500 won, and SK Hynix shares dropped 4.52 percent to 1,605,000 won. These losses were attributed to concerns regarding the sustainability of AI-driven demand, potential oversupply from Chinese memory chip manufacturer ChangXin Memory Technologies (CXMT), and profit-taking following Samsung's recent earnings report.

Foreign investors were primary drivers of the sell-off, net selling over 2 trillion won in the KOSPI market. This exit of capital occurred amid broader macroeconomic uncertainties, including rising oil prices and fluctuations in U.S. Treasury yields. Investors are now looking toward upcoming U.S. inflation data, specifically the Consumer Price Index (CPI) and Producer Price Index (PPI), to gauge future interest rate directions.

Entities

Bank of Korea · ChangXin Memory Technologies · Hanwha Aerospace · KOSDAQ · KOSPI · Korea Development Institute · SK Hynix · Samsung Electronics · South Korea

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