The South Korean stock market ended its impressive four-day winning streak on Thursday, as the benchmark Korea Composite Stock Price Index (KOSPI) experienced a downturn. This market correction was primarily driven by a pause in the rally of artificial intelligence (AI)-related shares and heightened geopolitical tensions between the United States and Iran.
The KOSPI closed down 43.41 points, or 0.53 percent, at 8,185.29, after an intraday dip to 7,841.01. This contrasts sharply with Wednesday’s performance, where the index reached a record high of 8,288.7, extending its four-session rally. That strong upward momentum was largely fueled by major semiconductor shares, including industry giants Samsung Electronics and SK Hynix, which had helped the KOSPI breach the significant 8,000-point mark earlier on Tuesday.
The decline in South Korean equities was largely attributed to investors taking profits after the recent surge in blue-chip stocks. Compounding this, news of US strikes targeting an Iranian military site reignited geopolitical concerns, dampening hopes for an imminent peace resolution and adding pressure to the global markets.
