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South Korean Shares Fall on Chip Profit-Taking

South Korea's benchmark KOSPI falls more than 1% to around 6,800 as investors take profits in chip stocks ahead of Nvidia's earnings, while higher global bond yields and Middle East tensions also weigh on risk appetite.

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The benchmark KOSPI fell more than 1% to around 6,800 on Monday, reversing gains from the previous session, as investors took profits in chip stocks ahead of Nvidia's earnings this week.

Samsung Electronics plunged more than 6%, while SK hynix gained nearly 2%, as investors remained cautious about the outlook for the AI-driven semiconductor rally.

Additionally, rising global bond yields pressured equities, with the US 30-year Treasury yield reaching its highest level in nearly 20 years.

Renewed Middle East tensions also pushed Brent crude toward $90 per barrel, raising concerns over higher inflation and keeping pressure on global risk appetite.

Losses were also seen in SK Square (-1.7%), KB Financial Group (-1.6%), and Shinhan Financial Group (-1.4%).

Meanwhile, Samsung Electronics' record shareholder-return plan earmarked up to KRW 110 trillion for shareholders this year, including KRW 30 trillion in third-quarter dividends, following SK hynix's KRW 40 trillion buyback.