FX.co ★ South Korean Shares Fall Further on Tech Weakness

On Friday, the benchmark KOSPI index dropped over 3% to approximately 4,995, continuing its descent below the 5,000 level. This decline was largely influenced by the downturn in US tech stocks, which negatively affected local semiconductor giants. The slump on Wall Street the previous night was fueled by concerns that excessive capital spending on AI could strain profitability and valuations among leading tech companies. Korea's market, heavily reliant on semiconductors, felt the impact keenly; shares of Samsung Electronics and SK hynix each fell over 3%, pulling the index down amid significant foreign investor sales. Program-driven trades exacerbated the losses, with a sell-side sidecar temporarily activated in KOSPI 200 futures during early trading. The market weakness widened, affecting other major players such as Hyundai Motor (down 5.1%), LG Energy Solution (down 3.7%), SK Square (down 6.2%), Hanwha Aerospace (down 6.1%), and HD Hyundai Heavy Industries (down 4.4%).