KOSPI tumbles in the 3% range amid US AI investment concerns; Samsung and SK hynix also slump [fn Morning Market]

[Financial News] South Korea’s stock market is plunging in the wake of an overnight decline in US tech stocks. Weak earnings from Google parent Alphabet have revived doubts about the profitability of AI investments, intensifying selling pressure, particularly on major semiconductor stocks.
With profit-taking adding to the pressure on South Korea’s stock market, which had rallied sharply recently, the KOSPI fell more than 3% early in the session.
As of 9:21 a.m. on the 30th, the KOSPI was down 218.90 points (3.69%) from the previous trading day at 5,718.76, according to the Korea Exchange. The KOSDAQ Index was also trading at 734.19, down 19.04 points (2.53%).
Losses were especially steep among semiconductor stocks with large market capitalizations. Samsung Electronics was trading at 223,500 won, down 8,500 won (3.66%) from the previous trading day, while SK hynix was at 422,500 won, down 30,500 won (6.78%). Samsung Electronics preferred shares were also down 4.40%, and selling pressure was concentrated across semiconductor-related stocks, including SK Square (-5.56%).
Trading flows diverged between individual investors and foreign investors and institutions. As of 9:21 a.m., individual investors had net bought 269.3 billion won worth of KOSPI shares.
Foreign investors and institutions, by contrast, were net sellers of 133.4 billion won and 168.9 billion won, respectively. On the KOSDAQ, individual investors had net bought 75.7 billion won, while foreign investors and institutions had net sold 36.6 billion won and 29.6 billion won, respectively. As individual investors step in to buy at lower prices amid the sharp selloff, foreign investors and institutions are reducing their exposure to risk assets.
The immediate factor weighing on South Korea’s stock market was weakness in US tech stocks overnight. On the 29th (local time), the Dow Jones Industrial Average closed at 52,342.56 on the New York Stock Exchange, down 132.54 points (0.25%) from the previous session.
The S&P 500 fell 23.59 points (0.30%) to 7,720.39, while the NASDAQ Composite dropped 365.13 points (1.38%) to 26,184.72. A major factor was Alphabet’s 12.64% plunge after it reported revenue below market expectations and concerns grew over the cost of AI-related investment spending. About $500 billion in market capitalization evaporated in a single day, deepening doubts about whether increased investment in AI infrastructure can translate into actual profits.
Cybersecurity firm Fortinet and cloud software company ServiceNow also fell more than 20% after reporting earnings, while Marvell Technology plunged more than 13% following reports of acquisition talks related to optical components for data centers.
The semiconductor sector also failed to escape the downturn. The Philadelphia Semiconductor Index fell 1.42%, ending a four-session winning streak. Micron dropped 4.98%, AMD fell 2.08%, and SK hynix’s US-traded American depositary receipts (ADRs) declined 1.58%. US-driven concerns about AI investment are also weighing on investor sentiment toward South Korean semiconductor stocks.
[email protected] Kang Jung-mo Reporter