Key facts
- KOSPI index fell 3.52% to 5,533.77.
- Samsung Electronics shares dropped 4.03%.
- SK hynix shares declined 5.49%.
- Korean won strengthened against the U.S. dollar.
- Three-year Treasury yields rose to 3.840%.
South Korean shares tumbled more than 3% on Thursday, with the benchmark KOSPI index closing down 3.52% at 5,533.77. The decline was driven by profit-taking in major chip shares, particularly Samsung Electronics and SK hynix, amid ongoing concerns about the profitability of massive investments in the artificial intelligence value chain. The market had rebounded in the previous session, but failed to sustain the gains. U.S. stocks closed mixed overnight, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all posting gains, partly influenced by Meta Platforms' increased AI investment following strong earnings. However, analyst Lee Kyoung-min of Daishin Securities noted that even strong results from companies like Meta and Tesla did not alleviate concerns over AI investment profitability. The end of SK hynix's share buyback program also reduced support for market demand. The Korean won strengthened against the U.S. dollar, trading at 1,324.2 won.