South Korea's KOSPI fell 3.59% Tuesday as chipmakers led a broad decline, extending a recent selloff that Yonhap linked to doubts about returns on artificial intelligence infrastructure spending.
The benchmark Korea Composite Stock Price Index closed at 5,648.79, down 210.29 points. Samsung Electronics lost 4.15% to 219,500 won, while SK hynix fell 5.03% to 1.4 million won. Declining stocks outnumbered advancing shares 656 to 220, Yonhap reported.
The move followed a 3.48% KOSPI decline on Oct. 30, when chipmakers also faced pressure over AI spending returns. The index opened 2.46% lower Tuesday before extending its losses. Trading involved 192.4 million shares, valued at 14.1 trillion won ($10.5 billion).
The selling reached other technology shares. SK Square, the parent of SK hynix, fell 5.37%, and Samsung Electro-Mechanics lost 7.38%. Internet companies Naver and Kakao declined 3.65% and 3.03%, respectively.
U.S. chip stocks had fallen in the preceding session. The PHLX Semiconductor Sector Index lost 3.4% Monday after a 7.2% drop Friday, while the Nasdaq Composite declined 1.07% Monday. Mirae Asset Securities analyst Kim Seok-hwan attributed part of the Seoul decline to the U.S. chip selloff and said investors continued to question the profitability of AI investment.
Foreign investors sold a net 1.5 trillion won in local shares, and institutions sold 511.7 billion won, according to Yonhap. Individuals bought a net 1.7 trillion won.
Losses also reached oil refiners: SK Innovation dropped 9.36%, and S-Oil fell 11.77%. Yonhap attributed the refiners' losses to lower crude prices amid hopes of a diplomatic resolution in the Middle East. The won was quoted at 1,341 won per U.S. dollar at 1:30 a.m. ET (3:30 p.m. in Seoul).
Investors also weighed the start of U.S. midterm voting, Yonhap reported.
