Semiconductor weakness deepens on Wall Street tech rout and AI profitability concerns; KOSPI plunges 3.48%
KOSDAQ tumbles 3.83% as selective buying flows into security stocks and company-specific favorable news
South Korean equity markets suffered steep losses on both the KOSPI and KOSDAQ indices. Heavy selling was concentrated in large-cap semiconductor shares as concerns over the return on investment (ROI) for artificial intelligence (AI) intensified following earnings reports from major U.S. technology companies. Foreign investors offloaded more than 1.6 trillion won ($1.2 billion) net, dragging the KOSPI down and sending the KOSDAQ tumbling more than 3%.
According to the Korea Exchange (KRX), the benchmark KOSPI closed down 206.92 points, or 3.48%, at 5,730.74. The tech-heavy KOSDAQ finished 28.85 points, or 3.83%, lower at 724.38. In the interbank foreign exchange market, the won-dollar exchange rate ended daytime trading down 2.5 won at 1,334.3 won.
The KOSPI opened lower following overnight losses among major U.S. corporations. Heightened scrutiny over AI monetization prompted foreign capital flight, particularly out of electrical and electronics shares, marking the second consecutive session of declines.
By sector, medical and precision instruments fell 7.1%, construction dropped 6.2%, transport equipment and parts declined 4.9%, and electrical and electronics lost 4.7%. Large-cap stocks fell 3.7%, mid-caps declined 1.1%, and small-caps retreated 1.5%.
In supply and demand dynamics, foreign investors net sold 1.,619.5 billion won, while institutional and retail investors net bought 744.5 billion won and 621.1 billion won, respectively. Foreigners offloaded 1,099.5 billion won in electrical and electronics, 229.5 billion won in finance, and 87.6 billion won in transport equipment and parts.
The KOSDAQ also extended its losing streak to a second session amid institutional selling, led by weakness in electrical and electronics and machinery and equipment sectors. Non-metallic minerals dropped 6.3%, machinery and equipment fell 5.6%, and medical and precision instruments lost 5.4%. While foreign and institutional investors net sold 27.6 billion won and 138.0 billion won, respectively, retail investors net bought 169.2 billion won.
Security Stocks Surge on Crypto Breach News; New Drug Highlights Emerge
Domestic information security shares rallied following reports of a major security breach at Binance, the world's largest cryptocurrency exchange. AhnLab (053800) jumped 17.98%, RaonSecure (042510) surged 16.82%, and Genians (263860) advanced 11.00%. The massive crypto security incident underscored the urgent need for enhanced cybersecurity across financial and digital asset sectors, channeling fresh buying into related counters.
Hanmi Pharmaceutical (128940) rose 6.82% after announcing a technology export agreement with U.S.-based BioMarin for a Fabry disease treatment. Sentiment was further bolstered by expectations surrounding 'Ephe', an obesity treatment that has recently commenced domestic prescriptions.
Daewon Pharmaceutical (003220) gained 12.73% on news of the successful completion of domestic Phase 3 clinical trials for 'Padoprazan', a novel gastroesophageal reflux disease treatment.
Individual Equities Outperform on Earnings Surprises and IPO Debuts
RaonRobotics (232680) spiked 24.19% on solid third-quarter results. On a separate basis, revenue surged 104.7% year-on-year to 26.5 billion won, while operating profit skyrocketed 259.3% to 3.9 billion won.
Amorepacific (090430) gained 3.78% after reporting a 25.4% increase in third-quarter operating profit to 115.2 billion won compared to the same period last year.
Seoul Semiconductor (046890) advanced 3.93%, driven by ongoing optimism over its development of 'WICOP3', an ultra-compact white LED technology that eliminates the need for rare-earth elements and phosphors.
Intellivix (420610), which made its KOSDAQ debut, skyrocketed 244.44% above its initial public offering (IPO) price of 9,000 won. As an AI-based video analytics specialist, the stock drew strong buying interest amid growth expectations for industrial safety, disaster response, and intelligent security surveillance businesses.
Conversely, SK hynix (000660) tumbled 7.08% amid a plunge in shares of U.S. parent Alphabet and widening anxiety over AI investment profitability. Samsung Electronics (005930) also retreated 3.02% as sentiment across the broader semiconductor sector turned bearish following weakness in U.S. tech shares.
Hyundai Motor (005380) dropped 3.59% after reporting third-quarter revenue of 45.11 trillion won, down 3.4% year-on-year. Production disruptions, declining sales volumes, and a downward revision to its annual sales target weighed heavily on investor sentiment.
APR (278470) fell 7.61% despite posting a 100.3% year-on-year surge in third-quarter revenue to 773.1 billion won and a 68.9% increase in operating profit to 160.6 billion won, as the figures fell short of market expectations.
Hanwha Aerospace (012450) plummeted 8.42% after its third-quarter operating profit dropped 46.2% year-on-year to 452 billion won, severely missing consensus forecasts.
GS Engineering & Construction (006360) slid 11.56% on weaker third-quarter earnings compared to a year earlier, weighed down by falling architectural and housing revenues alongside broader sector weakness.
