The KOSPI stood at 5,783.27 as of 10:33 a.m., up 0.92 percent from Friday's close of 5,730.74. The index opened 1.62 percent lower at 5,637.77 after a rout in U.S. semiconductor stocks, but erased its early losses and climbed above 5,800 before paring some of its gains.
Institutional investors bought a net 570.5 billion won ($426.9 million) of KOSPI shares, offsetting selling of 384.6 billion won by retail investors and 275.1 billion won by foreigners. Advancers outnumbered decliners 608 to 255.
The recovery came despite another steep decline in U.S. technology stocks Friday, with Intel losing as much as 28.58 percent after issuing a disappointing fourth-quarter revenue forecast amid weakening personal computer (PC) demand.
The company projected quarterly revenue of $15 billion to $16 billion, well below market expectations of about $17.1 billion. Rising memory-chip prices, slowing PC demand and cash flow concerns added to pressure on the broader semiconductor sector.
Other major chipmakers also suffered heavy losses, with Nvidia falling 4.22 percent, Micron Technology dropping 5.30 percent and Advanced Micro Devices (AMD) sinking 10.88 percent.
The Nasdaq Composite lost 2.86 percent, while the Philadelphia Semiconductor Index plunged 7.20 percent. The S&P 500 declined 1.82 percent and the Dow Jones Industrial Average fell 1.09 percent.
The selloff raised fresh concerns about whether strong artificial intelligence (AI) infrastructure spending could translate into sustainable profits, adding to uncertainty over global demand for memory chips and other semiconductor products.
Yet Seoul's chip bellwethers stood tough.
Samsung Electronics, a leading global memory-chip maker, edged down 0.11 percent to 224,750 won, while rival SK hynix, a major supplier of high-bandwidth memory (HBM) chips used in AI systems, rose 3.03 percent to 1,461,000 won.
Samsung Electronics' preferred shares gained 0.46 percent to 174,900 won, while SK Square, an investment holding company and major shareholder in SK hynix, advanced 2.56 percent to 920,000 won.
Elsewhere in technology, Samsung Electro-Mechanics, which manufactures electronic components such as multilayer ceramic capacitors and semiconductor substrates, added 0.50 percent to 1,202,000 won.
Gains also spread to other large-cap stocks. Hyundai Motor, South Korea's largest automaker, climbed 2.13 percent to 288,000 won, while electric-vehicle battery maker LG Energy Solution rose 0.70 percent to 362,000 won.
Samsung Biologics, a contract manufacturer of biopharmaceutical products, bucked the broader recovery, falling 2.56 percent to 1,449,000 won.
The junior KOSDAQ index also reversed its early losses, rising 1.07 percent to 732.11 as of 10:11 a.m., after opening 1.10 percent lower at 716.44.
Retail investors bought a net 28.8 billion won of KOSDAQ shares, while institutions purchased 8.4 billion won. Foreign investors sold a net 32.2 billion won. Advancers outnumbered decliners 1,005 to 652.
Gains were led by biotechnology and semiconductor equipment companies, while battery-related and robotics shares showed mixed performance.
Among biotechnology stocks, Alteogen, a developer of technology that converts intravenous drugs into subcutaneous injections, advanced 0.71 percent to 213,000 won. HLB, a pharmaceutical and biotechnology group developing cancer treatments, gained 3.38 percent to 41,350 won.
Semiconductor equipment maker Jusung Engineering, which specializes in thin-film deposition technology used in chip manufacturing, climbed 3.64 percent to 171,000 won, outperforming the broader market despite the overnight selloff in U.S. chip shares.
Battery-materials stocks posted modest gains. EcoPro, a holding company focused on battery materials, rose 0.97 percent to 72,900 won, while its cathode-materials subsidiary EcoPro BM was unchanged at 90,900 won.
Rainbow Robotics, a developer of collaborative and humanoid robots, slipped 0.41 percent to 361,500 won, bucking the broader recovery in technology shares.
The South Korean won meanwhile weakened to 1,338.10 per U.S. dollar, compared with 1,334.30 at the previous close.
Despite Monday's rebound, concerns over AI investment returns and semiconductor demand continued to cloud the market outlook. Investors are watching whether institutional buying can sustain the recovery amid lingering uncertainty over U.S. technology stocks.
Across the region, major Asian markets showed modest movements Monday. Japan's Nikkei 225 edged down 0.02 percent to 63,278.66, while Hong Kong's Hang Seng Index rose 0.03 percent to 23,301.74. Mainland China's Shanghai Composite gained 0.42 percent to 3,614.31, outperforming its regional peers.
Copyright ⓒ Aju Press All rights reserved.