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Seoul shares end slightly lower on chip losses amid AI valuation jitters

Published: 04 Dec. 2025, 18:43

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 4,028.51 points on Dec. 4, down 7.79 points, or 0.19 percent, from the previous trading session. [NEWS1]

Korean stocks closed slightly lower Thursday, following a two-day winning streak, as renewed concerns over stretched valuations in AI weighed on major chipmakers despite auto gains. The Korean won fell against the U.S. dollar.

The Kospi lost 7.79 points, or 0.19 percent, to close at 4,028.51.

Trade volume was moderate at 348.16 million shares worth 13.57 trillion won ($9.2 billion), with losers beating winners 592 to 283.

Foreigners off-loaded 696.49 billion won worth of shares alone, while individual and institutional investors purchased a net 560.78 billion won and 131.68 billion won worth of stocks, respectively.

The index had opened lower, even after Wall Street closed higher on hopes that the Federal Reserve will cut interest rates next week.

However, sentiment remained fragile among chip shares after Microsoft fell as much as 3 percent following a report that it reduced AI-software sales quotas, dragging down Nvidia and Micron Technology.

“Reports that Microsoft lowered its AI product sales targets have revived worries over softer AI demand and margins. In Korea, selling pressure was concentrated in semiconductor names, particularly from foreign investors,” said Lee Kyung-min, an analyst at Daishin Securities, adding that automakers performed well.

Most large-cap shares ended mixed, with semiconductor stocks leading the decline.

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 4,028.51 points on Dec. 4, down 7.79 points, or 0.19 percent, from the previous trading session. [NEWS1]

Samsung Electronics went up 0.57 percent to 105,100 won after opening lower, while its chipmaking rival SK hynix decreased 1.81 percent to 542,000 won.

Leading battery maker LG Energy Solution was down 1.91 percent to 410,000 won.

In contrast, carmakers gained momentum, with No. 1 automaker Hyundai Motor jumping 6.38 percent to 283,500 won and its sister automaker Kia adding 1.43 percent to 120,300 won on reduced tariff concerns.

Earlier in the day, U.S. President Donald Trump's administration posted on the Federal Register a notice implementing certain tariff elements of a Korea-U. S. trade deal, including a reduced duty rate of 15 percent on Korean autos retroactive to Nov. 1.

The local currency was quoted at 1,473.5 won against the greenback at 3:30 p.m., up 0.37 percent from the previous session’s 1,468 won.

Bond prices, which move inversely to yields, ended higher. The yield on three-year Treasurys went down 1.6 percentage points to 3.025 percent, and the return on the benchmark five-year government bonds decreased 1.7 basis points to 3.229 percent.

Yonhap