South Korean Shares Drop on Global Tech Selloff

South Korean Shares Drop on Global Tech Selloff

The benchmark KOSPI fell more than 2% to around 8,890 on Tuesday, retreating from record highs and tracking overnight losses on Wall Street as a selloff in major technology stocks weighed on sentiment.

Investors also remained cautious over elevated valuations and increasing regulatory scrutiny of leveraged products tied to South Korea's semiconductor sector, as authorities reviewed measures to address market volatility and record retail leverage.

Losses were led by technology heavyweights, with SK Hynix (-2.0%) and Samsung Electronics (-2.7%) trading lower, alongside Hyundai Motor (-5.5%), HD Hyundai Heavy Industries (-2.2%), and Kia Corporation (-4.2%).

Meanwhile, downside pressure was partly cushioned by continued strength in the AI semiconductor industry, with SK Hynix overtaking Samsung Electronics as South Korea's most valuable listed company, while Samsung reported HBM4 sales exceeding $1 billion within four months of its launch.

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