Seoul’s benchmark stock market opened lower on Wednesday, mirroring overnight losses on Wall Street. Investors are actively reassessing the future trajectory and valuations within the artificial intelligence (AI) sector, impacting Korean equities.
Following an initial 2.7 percent decline, the Korea Composite Stock Price Index (KOSPI), South Korea’s primary stock market indicator, partially recovered but still traded down 108.18 points, or 1.41 percent, reaching 7,548.13 by 9:15 a.m.
Globally, the Dow Jones Industrial Average saw a 0.25 percent dip overnight, while the technology-focused Nasdaq Composite experienced a more significant 1.16 percent decline.
Domestically, Korean technology shares further extended their losses, significantly weighing down the KOSPI benchmark index.
Market participants are keenly observing whether the current surge in capital spending, coupled with intensifying competition and expanding production capacities, will translate into the robust earnings growth required to sustain the often-elevated valuations of major technology companies.
Technology stocks broadly spearheaded these market declines.
Market leader Samsung Electronics recorded a 1.69 percent drop, while semiconductor giant SK hynix saw its shares decline by 0.95 percent.
Elsewhere in the market, top automaker Hyundai Motor shares fell 3.2 percent, and shipping and defense company Hanwha Ocean experienced a sharp plunge of 5.46 percent.
Conversely, a few stocks managed gains, with home appliance manufacturer LG Electronics rising 1.06 percent and LG Display shares climbing significantly by 5.33 percent.
