South Korea’s KOSPI falls more than 3% as semiconductor selling resumes
Updated
Summary
The benchmark KOSPI fell more than 3% to around 5,595 on Tuesday, reversing gains from the previous session. Renewed selling in semiconductor stocks reflected persistent concerns about the sustainability of AI investment.
Why it matters
Samsung Electronics fell more than 3%, while SK hynix dropped more than 6%, amid concerns about debt-funded AI infrastructure and elevated borrowing costs clouding the sector outlook.
Losses extended beyond semiconductors: Hanwha Aerospace fell 11.3%, HD Hyundai Heavy Industries 7.4%, SK Square 7.1%, Doosan Enerbility 6.6%, Hyundai Motor 4.8%, LG Energy Solution 3.9% and Kia Corporation 3.5%.
South Korea has a planned 800 trillion won investment in four semiconductor fabs, while SK hynix has a 2 trillion won supplier financing program; both are intended to expand domestic chipmaking capacity and strengthen the semiconductor supply chain. Infrastructure and US trade-related hurdles remain.