Lead

Seoul shares plunged 5.4 percent on Wednesday as technology stocks extended losses and investors reassessed the outlook for the artificial intelligence (AI) trade, according to Yonhap News Agency. The benchmark Korea Composite Stock Price Index (KOSPI) closed down 409.52 points at 7,246.79 after opening 2.7 percent lower.

Coverage comparison

Yonhap News Agency, South Korea's leading wire service, reported the market's sharp slide in multiple updates. An early report noted that Seoul shares opened 2.7 percent lower, tracking overnight losses on Wall Street, with the KOSPI falling 203.83 points to 7,452.48 at the opening bell. A subsequent update showed the index paring losses to trade down 1.41 percent at 7,548.13 as of 9:15 a.m., before the final report confirmed the index closed at 7,246.79, down 5.4 percent.

The divergence in intraday figures reflects the market's volatile trading session, with the index swinging from a 2.7 percent decline at the open to a narrower loss mid-morning and finally settling at its lowest level of the day.

Key claims

  • The KOSPI closed down 409.52 points, or 5.4 percent, at 7,246.79, after opening 2.7 percent lower.
  • Trade volume was heavy at 495.75 million shares worth 41.65 trillion won (US$27.78 billion), with decliners outnumbering gainers 763 to 124.
  • Foreigners bought a net 335.64 billion won worth of stocks, while institutions and foreigners sold a net 337.7 billion won and 45.1 billion won, respectively. (Note: The report states institutions and foreigners sold, with figures for both; it is possible the second figure refers to retail investors, but the text says 'institutions and foreigners'.)
  • Overnight, the Dow Jones Industrial Average fell 0.25 percent, and the tech-heavy Nasdaq Composite declined 1.16 percent.
  • Market bellwether Samsung Electronics plunged 6.25 percent, while chip giant SK hynix declined 5.68 percent.
  • Among other movers, Hyundai Motor dropped 3.2 percent and Hanwha Ocean plunged 5.46 percent, while LG Electronics rose 1.06 percent and LG Display climbed 5.33 percent.
  • The Korean won was trading at 1,518.65 won against the U.S. dollar as of 9:15 a.m., down 2.85 won from the previous session. Another report noted the won rose against the dollar, though the morning figure showed a decline; the final report does not specify the closing exchange rate.
Investors are focusing on whether rising capital spending, intensifying competition and expanding production capacity will generate the earnings growth needed to justify elevated valuations of technology companies, according to the reports.