The benchmark KOSPI fell more than 2% to around 5,895 on Wednesday, hitting its lowest level in over three months as persistent concerns over the semiconductor sector continued to pressure investor sentiment. Market participants remained cautious about the outlook for AI-related infrastructure spending, stretched semiconductor valuations, and mounting competitive pressure from China’s chip industry.
Risk appetite was further dampened after SK hynix reported record second-quarter revenue and operating profit but still fell short of analyst forecasts, reinforcing worries that AI-driven earnings momentum may be slowing, even as demand for high-bandwidth memory remains robust. SK hynix shares dropped nearly 5%, accompanied by declines in SK Square (-3.6%), Samsung Electro-Mechanics (-3.8%), HD Hyundai Heavy Industries (-1.0%), and Hanwha Aerospace (-1.5%).
On the other hand, weaker oil prices—following an easing of supply concerns in the Middle East—along with selective bargain hunting after the previous session’s sharp sell-off, offered some support to the broader market.
