FX.co ★ South Korean Shares Slide on Tech Selloff

The benchmark KOSPI dropped nearly 4% to around 7,730 on Tuesday, extending the previous session’s losses as investors locked in profits from heavyweight technology names after a strong AI-fueled rally. Sentiment toward the AI trade weakened further, with tech shares under sustained pressure amid a global pullback in semiconductor stocks and mounting doubts over whether solid earnings can continue to support elevated valuations.

Samsung Electronics slid 6.8% despite unveiling record preliminary second-quarter earnings that exceeded market expectations, with many investors viewing the strong results as already priced in. SK Hynix fell 5.9% ahead of its planned US listing.

Battery-related stocks also retreated after LG Energy Solution sank 6.4% on quarterly operating profit that came in well below forecasts, deepening worries about sluggish global EV demand.

Other notable decliners included SK Square (-8.4%), Hyundai Motor (-5.3%), HD Hyundai Heavy Industries (-4.5%), Hanwha Aerospace (-3.9%), and Kia Corp (-4.6%).