02.07.202601:31:50UTC+00South Korean Shares Slide to 3-Week Low

The benchmark KOSPI fell nearly 4% to around 7,990 on Thursday, marking its lowest close in three weeks and extending a recent losing streak. The decline was driven by a global selloff in AI-related semiconductor stocks, which weighed heavily on the index’s major constituents.

The downturn followed sharp overnight losses in US chipmakers, as mounting doubts over the durability of AI-related capital spending sparked a broad retreat in technology shares. This prompted investors to lock in profits and pare back positions in South Korea’s heavily weighted semiconductor names after a strong rally in the first half of the year.

Selling was led by Samsung Electronics (-6.7%) and SK Hynix (-8.4%), with further steep losses in SK Square (-9.3%), Hyundai Motor (-3.2%), HD Hyundai Heavy Industries (-2.9%), Doosan Enerbility (-3.2%), SK Inc. (-8.9%), and Hyundai Mobis (-3.1%).

Domestic sentiment weakened further after data showed South Korea’s annual inflation rate accelerated to 3.2% in June, the highest reading since December 2023. The pickup in price pressures reinforced expectations that the Bank of Korea may retain a tighter policy stance for longer.