South Korean stocks continued to decline on Tuesday morning, with major chip shares experiencing significant losses following a drop in US tech stocks. The benchmark Korea Composite Stock Price Index (KOSPI) opened 0.34 percent lower and later fell by 4.27 percent to 8,725.39 by 11:20 am.
In the US, Vice President JD Vance mentioned progress in negotiations with Iran, but concerns over major tech companies led to a mixed closing for US stocks. The Nasdaq, which is tech-heavy, saw a 1.3 percent decline.
In Seoul, blue-chip tech giants like SK hynix and Samsung Electronics witnessed drops of 5.34 percent and 4.95 percent, respectively. Samsung Electro-Mechanics, an affiliate of Samsung Electronics, also fell by 8.57 percent. Automobile shares, including Hyundai Motor and Kia, were among the losers as well.
The Korean won was trading at 1.533.7 won against the US dollar at 11:20 am, showing a slight increase from the previous session. Additionally, South Korea’s financial regulator announced plans to introduce a “T+1” stock settlement system by October to enhance market efficiency.
The Financial Services Commission (FSC) highlighted that shortening the settlement period would boost market efficiency. The Korea Exchange (KRX) will also implement measures to extend stock trading hours, including introducing after-hours trading in September.
