South Korean equities experienced a market correction on Friday, pausing a robust six-day rally. Investors engaged in profit-taking after significant gains driven by the artificial intelligence (AI) boom, while renewed geopolitical concerns surrounding Iran also weighed on investor sentiment.
Following a session of volatile trading, the benchmark Korea Composite Stock Price Index (KOSPI) closed down 11.42 points, or 0.13 percent, settling at 9,052.42. Earlier in the day, the index had touched an intra-day high of 9,385.59.
Trading activity remained robust, with a substantial volume of 511.1 million shares exchanged, valued at 65.3 trillion won ($42.7 billion). Market breadth favored advances, as winners significantly outnumbered losers, with 784 gaining stocks against 115 declining issues.
Retail investors showed strong buying interest, acquiring a net 1.7 trillion won in shares. Conversely, institutional and foreign investors collectively offloaded a net 1.6 trillion won, contributing to the day’s decline.
The KOSPI initially opened with strong gains, fueled by a rally in semiconductor stocks. However, the afternoon saw the index dip into negative territory following reports of postponed diplomatic talks between the U.S. and Iran, which heightened geopolitical tensions.
This development stemmed from an announcement by the White House, confirming Vice President J.D. Vance’s decision to delay his scheduled trip to Switzerland for direct diplomatic engagements with Iranian officials.
Lee Kyoung-min, an analyst at Daishin Securities, noted that investors are increasingly anticipating that potential bottlenecks in the semiconductor supply chain could drive both demand and pricing for chips, potentially sustaining an upward trend in stock valuations.
Among the market’s leading companies, tech giant Samsung Electronics saw its shares decline by 2.34 percent, closing at 354,000 won. In contrast, semiconductor peer SK Hynix registered a gain of 2.94 percent, reaching 2,764,000 won.
Elsewhere in the market, top automaker Hyundai Motor climbed 2 percent to 613,000 won, and battery manufacturer LG Energy Solution ended the day up 1.12 percent at 404,500 won. However, defense sector leader Hanwha Aerospace experienced a significant drop of 5.63 percent, settling at 1,122,000 won.
The biotechnology sector broadly faced downward pressure due to profit-taking activities.
Specifically, Samsung Biologics shares fell 3.92 percent to 1,374,000 won, while Celltrion experienced a 1.9 percent decline, closing at 170,300 won.
