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Kospi dips over 1% on tech uncertainties

Published: 01 Sep. 2025, 17:38

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 3,142.93 points on Sept. 1, down 43.08 points, or 1.35 percent, from the previous trading session. [YONHAP]

Shares closed more than 1 percent lower Monday as investors off-loaded technology shares amid uncertainties in the semiconductor and artificial intelligence sectors. The local currency fell against the U.S. dollar.

The Kospi plunged 43.08 points, or 1.35 percent, to close at 3,142.93.

Trade volume was slim at 258.1 million shares worth 7.9 trillion won ($5.7 billion), with losers beating gainers 692 to 201.

Foreigners sold a net 272 billion won, becoming net sellers for five straight sessions. Individuals bought a net 346 billion won, while institutions sold a net 193.2 billion won.

Analysts said investors rushed to off-load tech stocks on reports that China's Alibaba has developed a new AI chip, raising concerns the move could trigger another global market shock.

Earlier this year, tech stocks faced a global sell-off after Chinese AI startup DeepSeek unveiled its AI chatbot.

"Samsung Electronics and SK hynix also led the overall losses following the announcement of new regulation by the U.S. Commerce Department aimed at their units in China," said Seo Sang-young, an analyst at Mirae Asset Securities.

Last week, Washington announced a plan to strip Samsung and SK hynix of "validated end-user [VEU]" status, a move that will require them to secure licenses for sending certain U.S. chipmaking equipment to their plants in China.

During the previous Biden administration, the two companies were designated as VEUs, a status that reduces the licensing burden on the firms by allowing them to ship certain U.S. semiconductor equipment to preapproved sites under a general authorization instead of individual export licenses.

Top market cap Samsung Electronics sank 3.01 percent to 67,600 won, while No. 2 chipmaker SK hynix dipped 4.83 percent to 256,000 won.

Kakao, which operates the country's most popular mobile messenger app KakaoTalk, decreased 2.08 percent to 61,200 won after prosecutors last week sought a 15-year prison term for the firm's founder on charges of stock manipulation related to its takeover of K-pop agency SM Entertainment.

KB Financial lost 1.02 percent to 107,100 won, and Shinhan Financial Group lost 1.99 percent to 64,000 won.

The local currency was quoted at 1,393.7 won against the greenback at 3:30 p.m., up 0.26 percent from the previous session's quote of 1,390.1 won.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys added 0.9 basis points to 2.435 percent, and the return on the benchmark five-year government bonds went up 1.4 basis points to 2.597 percent.

Yonhap