Key facts
- Seoul shares opened sharply lower on Tuesday, August 25, 2026.
- The benchmark Korea Composite Stock Price Index (KOSPI) fell 3.66% to 6,452.12.
- The decline followed overnight losses in U.S. technology shares, with the Nasdaq Composite down 0.76%.
- Investors are cautious ahead of Nvidia's earnings report and U.S. economic data.
- Geopolitical tensions in the Middle East are also a concern.
Seoul stocks opened sharply lower on Tuesday, August 25, 2026, extending losses from the previous session as investors adopted a cautious stance ahead of key events. The benchmark Korea Composite Stock Price Index (KOSPI) was trading 244.84 points, or 3.66 percent, lower at 6,452.12 as of 9:15 a.m., following overnight declines in U.S. technology shares.
The tech selloff was led by major chipmakers, with Samsung Electronics falling 4.28 percent and its rival SK hynix declining 6.46 percent. This downturn reflects renewed concerns over the profitability of artificial intelligence (AI)-related investments.
Overnight, U.S. stock markets presented a mixed picture: the Dow Jones Industrial Average gained 0.26 percent, while the tech-heavy Nasdaq Composite closed down 0.76 percent. Investors are also factoring in escalating geopolitical tensions in the Middle East, alongside anticipation of crucial U.S. economic data and corporate earnings reports this week.
Further influencing market sentiment is the upcoming speech by Federal Reserve Governor Kevin Warsh at the annual Jackson Hole gathering on Friday. His remarks are expected to offer insights into the Federal Reserve's monetary policy direction amid persistent inflation.
Other notable stock movements included a 1.57 percent drop in top automaker Hyundai Motor and a 0.72 percent decline in defense giant Hanwha Aerospace. On the upside, Samyang Foods rose 0.2 percent, and Korea Zinc climbed 2.31 percent.
The Korean won was trading at 1,380.00 against the U.S. dollar, up 3.2 won from the previous session's close.