Seoul’s benchmark KOSPI opened lower on Monday, with major South Korean semiconductor stocks experiencing declines amidst escalating tensions in the Middle East, impacting investor sentiment across the market.
As of 9:19 a.m. local time, the Korea Composite Stock Price Index (KOSPI) recorded a fall of 35.41 points, or 0.52 percent, settling at 6,785.19.
This downturn mirrored global market sentiment, particularly Friday’s close on major US stock indexes, which saw declines driven by growing concerns within the artificial intelligence (AI) sector, notably chipmaking companies.
Prominent memory chip manufacturers, including Sandisk and Micron, were at the forefront of this decline, with both companies experiencing drops exceeding 8 percent.
Further contributing to market apprehension were geopolitical developments in the Middle East. News emerged of another US service member’s death in Iraq, following the Pentagon’s report of two fatalities in Jordan the previous day.
This tragic incident, involving a soldier killed during the disposal of a downed Iranian drone, occurred amidst a weekend characterized by escalating exchanges of attacks between Iran and the United States.
Within the Seoul market itself, the overall trend saw most stocks trading lower. However, select semiconductor stocks managed to gain ground against the prevailing downtrend.
South Korea’s market leader, Samsung Electronics, registered a modest gain of 0.39 percent, while its competitor, SK hynix, performed stronger, increasing by 1.79 percent.
Conversely, other key industry players faced significant drops: top car manufacturer Hyundai Motor decreased by 4 percent, battery solutions provider LG Energy Solution saw a 2.54 percent decline, and defense technology leader Hanwha Aerospace dipped by 3.92 percent.
