The benchmark KOSPI dropped nearly 2% to around 6,570 on Tuesday, extending its losses for a second consecutive session as a global selloff in technology stocks weighed heavily on Korean chipmakers. Samsung Electronics and SK hynix declined more than 3% and 6%, respectively, amid renewed concerns over the profitability of AI-related investments and ahead of Nvidia’s earnings release scheduled for Wednesday.
Sentiment was further dampened by Samsung’s underwhelming shareholder-return plan, which pressured the broader market after the stock slumped 8.7% on Monday. Investors had been anticipating a larger payout and more concrete commitments on share buybacks and cancellations.
Other notable losers included SK Square (-6.7%), LG Energy Solution (-3.3%), Hyundai Mobis (-2.3%), LG Electronics (-3.9%), and LS Electric (-3.9%).
Meanwhile, attention shifted to the Bank of Korea’s policy meeting on Thursday. A slim majority of economists now expect a 25-basis-point rate hike to 3.00%, following last month’s surprise increase to 2.75%.
