The KOSPI, which rebounded over 2% the previous day, plummeted by more than 3% in a single day, falling below the 5650 mark. Concerns about the profitability of AI investments by major U.S. tech companies reignited selling pressure, particularly among large-cap semiconductor stocks. Foreign and institutional investors sold more than 2 trillion won in the stock market, with Samsung Electronics and SK Hynix both dropping 4-5%, dragging down the index.
According to the Korea Exchange, the KOSPI closed at 5648.79, down 210.29 points (3.59%) from the previous trading day. After a 2.24% increase that brought it back to 5859.08, the KOSPI surrendered all gains in just one day, settling in the mid-5600s.
The index opened at 5715.19, down 143.89 points (2.46%) from the previous day. The KOSPI lost the 5700 mark early in the session as selling from foreign and institutional investors continued, exacerbating the decline. By the afternoon, it failed to recover and ultimately closed below 5650.
In terms of trading volume, the selling by foreign and institutional investors was particularly pronounced. Foreign investors sold a net 1.5299 trillion won, while institutions sold 514.7 billion won, totaling a net sell-off of 2.0446 trillion won. In contrast, individual investors bought a net 1.6644 trillion won, absorbing the selling pressure, but it was not enough to prevent the index from falling.
The sharp decline in the domestic stock market is attributed to renewed concerns over the financial burden of AI investments by major U.S. tech firms. As doubts grow about whether the massive investments in AI infrastructure will translate into actual profits, selling pressure has spread across global tech stocks.
On Wall Street, the Nasdaq Composite fell by 1.07%, and the S&P 500 dropped by 0.51%. Notably, Oracle's announcement of a $20 billion fundraising effort to expand its AI infrastructure led to an 8.8% drop in its stock price. Other U.S. semiconductor companies, including AMD (-7.52%), Micron Technology (-5.80%), and Intel (-8.83%), also saw declines. The Philadelphia Semiconductor Index fell by 3.37%.
The weakness in U.S. tech stocks was mirrored in the domestic semiconductor giants. Samsung Electronics, the largest company by market capitalization on the KOSPI, fell by 4.15%, while SK Hynix, the second-largest, dropped by 5.03%. Other semiconductor-related stocks, including Samsung Electronics Preferred (-3.05%), SK Square (-5.37%), and Samsung Electro-Mechanics (-7.38%), also experienced significant declines.
Most other large-cap stocks also faced losses. LG Energy Solution fell by 5.06%, Hyundai Motor by 3.31%, KB Financial by 1.30%, and Samsung Life by 3.86%. In contrast, Samsung Biologics managed to rise by 2.11%, performing relatively well among large-cap stocks.
The KOSDAQ market also saw a decline of over 4%. The KOSDAQ index closed at 704.39, down 29.97 points (4.08%) from the previous trading day. After reaching 734.36 the day before, the index fell back into the low 700s.
In the KOSDAQ market, selling by foreign and institutional investors continued. Foreign investors sold a net 76.4 billion won, while institutions sold 234.6 billion won. Individual investors bought a net 319.9 billion won, but this was insufficient to prevent the index from declining.
Particularly, stocks related to semiconductor equipment and materials saw significant drops. IOTechniques fell by 8.56%, followed by JUSUNG Engineering (-7.68%), Wonik IPS (-7.14%), Simtec (-6.73%), and Rino Industrial (-6.14%).
Battery-related stocks such as EcoPro (-4.88%) and EcoPro BM (-4.89%) also showed weakness. Rainbow Robotics (-4.00%) and HLB (-2.40%) declined, while Alteogen rose by 0.23%.
* This article has been translated by AI.
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