26.06.202601:33:54UTC+00South Korean Shares Fall on Tech Selloff, Profit-Taking

The benchmark KOSPI fell more than 3% to around 8,660 on Friday, erasing the previous session’s gains amid overnight losses on Wall Street and profit-taking. Sentiment soured after the Nasdaq extended its losing streak, as renewed weakness in large-cap technology stocks reignited concerns about stretched AI-related valuations.

Caution also prevailed after US core inflation came in line with expectations but climbed to its highest level since October 2023, bolstering views that the Federal Reserve may keep interest rates elevated for longer. At the same time, investors moved to lock in gains following the KOSPI’s 5.4% surge in the prior session.

Technology heavyweights led the downturn, with Samsung Electronics and SK Hynix sliding more than 3% and 4%, respectively. Other major names also retreated sharply, including SK Square (-7.7%), Hyundai Motor (-3.4%), LG Energy Solution (-2.7%), HD Hyundai Heavy Industries (-3.3%), Hanwha Aerospace (-4.8%), and Doosan Enerbility (-4.6%).