The benchmark KOSPI fell 1.23% to close at 5,594 on Thursday, extending losses to its lowest level since early April. Persistent concerns over AI-related capital spending and stretched valuations weighed on technology stocks, erasing earlier gains. Many investors remained unconvinced that the heavy investment in AI infrastructure will deliver adequate returns, a skepticism underscored by further declines in SK Hynix despite its record quarterly earnings.
Meanwhile, the initial boost from stronger-than-expected Samsung Electronics results and new government measures aimed at curbing leveraged ETF-driven volatility faded as selling pressure resumed. Market sentiment was also restrained after the Federal Reserve left interest rates unchanged and offered little guidance on the timing of future rate cuts.
Among index heavyweights, SK Hynix dropped 5.64%, while Samsung Electronics slipped 0.72%. Other major decliners included SK Square (-6.00%), Samsung Electro-Mechanics (-14.97%), and LG Electronics (-1.66%).
