The KOSPI opened at 7,443.8, down 212.5 points, or 2.8 percent.
The drop follows Tuesday's 4.9 percent plunge, which triggered the main board's sixth circuit breaker of the year, and an overnight session in New York where the selloff Seoul started came home: the Nasdaq lost 1.2 percent as Micron fell 4.7 percent and the Philadelphia semiconductor index shed 4.7 percent.
Foreigners sold a net 179.6 billion won of KOSPI shares in the first 42 minutes, on course to stretch their selling streak to a 14th consecutive session. Foreigners had kept up record selling spree throughout the year as the KOSPI made record climb. Current-account data showed outflow from foreign stock selling amounted to $74.67 billion as of May this year.
Institutions bought a net 194.4 billion won and individuals sold a net 7.7 billion won, the same standoff that has defined the past two weeks, with domestic money absorbing what foreign funds are shedding and losing ground anyway.
The selling is a positioning story, not an earnings one. Samsung's record second-quarter results beat forecasts on Monday and the stock was sold regardless, which traders read as a sign that expectations had climbed past even the best printable numbers.
Samsung Electronics fell 2.9 percent to 287,500 won ($189.18).
SK hynix lost 2.1 percent to 2,154,000 won ($1,417.38), a milder decline than its holding company SK square, which dropped 6.9 percent to 1,263,000 won ($831.08).
The supply chain took the deepest cuts. Samsung Electro-Mechanics slid 8.1 percent to 1,515,000 won ($996.91), the worst performer among the top caps.
Kia was the rare large-cap gainer, rising 1.3 percent to 155,700 won ($102.45).
The scale of the unwind explains the market's sensitivity. Foreign net selling on the KOSPI reached a record 150.26 trillion won in the first half, with roughly 90 percent concentrated in Samsung Electronics and SK hynix, according to Korea Exchange data, meaning the two stocks that carried the index to its early July peak above 8,300 are the same two through which the exit runs.
The KOSDAQ fell 20.5 points, or 2.5 percent, to 810.7, holding up slightly better than the main board as foreign selling stayed concentrated in large caps.
The won weakened to 1,519.70 per dollar, up 2.50 won from Tuesday, according to Hana Bank rates as of 9:07 a.m.
The next test comes Friday, when SK hynix's American depositary receipts begin trading on the Nasdaq. A strong debut would give the global memory trade a new anchor; a weak one would hand foreign sellers a fresh price signal, and there is little in the first two hours of Wednesday to suggest they need one.
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