Seoul:South Korean shares dropped more than 3 percent on Thursday as investors engaged in profit-taking of major chip shares. This downturn followed a rebound in the previous session and occurred amid ongoing concerns over investments in the artificial intelligence (AI) value chain. Additionally, the Korean won strengthened against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) decreased by 201.8 points, or 3.52 percent, closing at 5,533.77. The index initially opened down 1.14 percent, briefly turned positive to reach an intraday high of 5,740.28, and then resumed its decline, resulting in sharply deepened losses.
In the prior session, the KOSPI had rebounded more than 3 percent, recovering from significant losses as semiconductor shares rallied. In contrast, U.S. stocks showed mixed results overnight, with AI-related shares rebounding after SpaceX announced its quarterly earnings. The Dow Jones Industrial Average increased by 0.69 percent, the S&P 500 gained 0.58 percent, and the Nasdaq Composite advanced 1.05 percent.
Meta Platforms reported strong earnings and furthered its commitment to the AI sector. Meanwhile, in Seoul, tech stocks led the market decline. By 330 p.m., the Korean won was quoted at 1,324.2 won against the U.S. dollar, reflecting an increase of 1 won from the previous trading session's close.