05.06.202601:37:36UTC+00South Korean Shares Slide on Chip Selloff

The benchmark KOSPI dropped nearly 5% to around 8,210 on Friday, extending losses for a second consecutive session and heading for its steepest weekly decline since late March amid a broad global selloff in semiconductor stocks. Chipmakers came under intense pressure after weaker-than-expected results from Broadcom sparked a widespread pullback in semiconductor shares worldwide.

Market sentiment was further dampened by rising tensions in the Middle East after Hezbollah rejected a new ceasefire proposal in Lebanon and Israel signaled it would maintain its military presence, complicating efforts to secure a broader peace deal involving Iran. The developments fueled risk aversion and stoked worries about possible disruptions to energy markets.

Investors also continued to take profits after the market’s recent record-setting rally, while foreign funds remained heavy net sellers. Samsung Electronics (-6.8%) and SK Hynix (-9.0%) led the declines, along with SK Square (-9.2%), Hyundai Motor (-6.6%), and LG Energy Solution (-3.2%).