South Korean stocks rebound led by technology sector

South Korean shares extended gains on Wednesday morning, driven by a significant rebound in technology stocks. The benchmark Korea Composite Stock Price Index (KOSPI) rose 4.1 percent to 5,780.67, recovering from a nearly 4 percent decline in the previous session.

Market leaders Samsung Electronics and SK hynix saw substantial jumps of 7.09 percent and 7.2 percent, respectively. This recovery comes despite ongoing market concerns regarding heavy investment in artificial intelligence (AI) infrastructure and potential credit risks within the AI value chain.

During the trading session, the Korea Exchange (KRX) activated a buy-side sidecar, temporarily suspending program trading orders for five minutes following a sharp rise in the KOSPI 200 Futures Index. While retail investors sold a net 1 trillion won, both institutions and foreign investors were net buyers.