The benchmark KOSPI slipped nearly 1% to around 8,700 on Tuesday, pulling back from record highs as investors took profits amid renewed tensions in the Middle East and growing inflation worries. Oil prices stayed elevated following reports that Iran had suspended negotiations with the United States, heightening fears of potential disruptions to global energy supplies and adding to inflationary pressures.
South Korea’s annual inflation rate quickened to 3.1% in May, its highest level in more than two years, strengthening expectations that the Bank of Korea may keep monetary policy in a hawkish stance for an extended period.
On the corporate front, notable declines included SK Hynix (-2.3%), SK Square (-1.9%), Hyundai Motor (-5.3%), Hyundai Mobis (-5.9%), and Doosan Enerbility (-5.5%). However, the broader market downside was partially offset by lingering optimism surrounding artificial intelligence demand after Nvidia unveiled a new AI-focused chip, and CEO Jensen Huang met with SK Group Chairman Chey Tae-won to discuss cooperation on AI memory.
Samsung Electronics advanced 2.4%, while LG Energy Solution climbed 2.5%.
