South Korean Shares Edge Lower on AI Concerns

The benchmark KOSPI edged down to around 5,660 on Monday, reversing gains from the previous session, as AI investment concerns weighed on semiconductor stocks amid a US tech sell-off. Samsung Electronics slipped more than 2%, while other notable decliners included SK Square (-2.6%), Samsung Electro-Mechanics (-4.7%), Doosan Enerbility (-1.2%), Shinhan Financial Group (-1.4%), HD Hyundai Heavy Industries (-4.0%), Hana Financial Group (-1.1%), and SK Inc (-2.4%). DeepSeek’s latest AI model revived concerns that more efficient models could require less memory, while growing competition from Chinese chipmakers added to worries over Samsung Electronics and SK hynix. Foreign investors’ heavy net selling of Korean equities last week further highlighted the pressure on the market. Meanwhile, escalating Middle East tensions and attacks on commercial vessels in the Persian Gulf kept oil-supply disruption risks in focus, although oil prices eased early Monday.