Key facts
- Seoul shares opened lower on Tuesday, with the KOSPI index down 3.7% at the opening bell.
- Samsung Electronics estimated its April-June operating profit at 89.4 trillion won ($58.4 billion), exceeding market forecasts.
- Technology stocks, including Samsung Electronics and SK hynix, experienced significant declines.
- Hanwha Ocean saw a substantial drop of 21% following a failed bid for a Canadian submarine project.
- Gainers included Amorepacific and SK Innovation.
- The Korean won weakened against the U.S. dollar.
Seoul shares opened lower on Tuesday, influenced by profit-taking in technology stocks following Samsung Electronics' release of preliminary second-quarter earnings. The benchmark Korea Composite Stock Price Index (KOSPI) fell 3.7% to 7,756.80 at the opening bell.
Samsung Electronics estimated its April-June operating profit at 89.4 trillion won (US$58.4 billion), surpassing market expectations. This figure includes provisions for employee bonuses; excluding these, the operating profit is estimated at around 100 trillion won.
Technology stocks were the primary drivers of the decline. Market bellwether Samsung Electronics saw its shares drop 5.6%, while chip giant SK hynix declined 2.3% ahead of its planned $29 billion U.S. listing later this week.
Other notable decliners included top carmaker Hyundai Motor, down 4.9%, and defense company Hanwha Aerospace, which shed 7.9%. Hanwha Ocean experienced a significant plunge of 21% after a South Korean consortium, including the shipbuilder, failed to secure Canada's multibillion-dollar submarine procurement project.
On the upside, cosmetics maker Amorepacific rose 1.7%, and leading refiner SK Innovation climbed 1.87%. The Korean won traded at 1,530.35 against the U.S. dollar, down 0.35 won from the previous session.