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South Korean Shares Extend Decline

The benchmark KOSPI fell nearly 2% to around 6,570 on Tuesday, extending losses for a second straight session, as a selloff in global technology shares weighed on Korean chipmakers. Samsung Electronics and SK hynix fell more than 3% and 6%, respectively, amid renewed concerns over the profitability of AI-related investments ahead of Nvidia’s earnings report, while reports that US officials were pressing Korean chipmakers to expand investment in American production facilities added to the sector’s weakness. Samsung’s disappointing shareholder-return plan also weighed on the market after its shares plunged on Monday, as investors had expected a larger payout and clearer plans for share buybacks and cancellations. Other notable declines included SK Square (-6.7%), LG Energy Solution (-3.3%), and Hyundai Mobis (-2.3%). Attention now turned to the Bank of Korea’s policy meeting on Thursday, with markets expecting another 25-basis-point rate hike to 3.00% following last month’s 2.75%.

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