The South Korean stock market tumbled by 5.4% on Wednesday, with technology shares continuing their decline as investors reassessed the outlook for artificial intelligence (AI) related trading. The Korean won strengthened against the US dollar.
The benchmark KOSPI index opened 2.7% lower and extended its losses, closing down 409.52 points, or 5.4%, at 7,246.79.
Trading volume for the session reached approximately 495.75 million shares, with a total transaction value of 41.65 trillion won (about $27.78 billion). Decliners outnumbered advancers by a ratio of 763 to 124.
Analysts noted that the persistent downturn in the Korean market is primarily driven by investor concerns. There are worries that increased capital expenditure and capacity expansion by major technology firms may take longer to translate into profit growth sufficient to justify their elevated valuations.
Among individual stocks, bellwether Samsung Electronics Co Ltd fell 6.25% to 277,500 won, while its rival SK Hynix Inc dropped 5.68% to 2,076,000 won.
Hyundai Motor Co shares declined 3.55% to 462,500 won, and defense contractor Hanwha Aerospace Co Ltd plunged 7.22% to 1,041,000 won.
On the gainers' side, shipping firm HMM Co Ltd rose 2.3% to 20,050 won, and S-Oil Corp advanced 3.3% to 131,600 won.
As of 3:30 PM local time, the Korean won was trading at 1,498.5 per US dollar, appreciating by 29.7 won from the previous session's close.
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