Korea's $519 bil. chip megaproject sparks Kosdaq rally, fails to lift KOSPI
A stock ticker in the dealing room of Hana Bank's headquarters in Seoul shows the benchmark KOSPI finishing at 8,394.65, down 0.20 percent from the previous session, Monday. The secondary bourse Kosdaq, by contrast, significantly outperformed the main board, surging more than 8 percent to close at 920.57. Yonhap
Seoul stocks ended mixed Monday as persistent foreign selling kept the benchmark KOSPI in negative territory, while the government's announcement of a large-scale semiconductor investment initiative fueled a broad rally in the Kosdaq and small-cap growth shares.
The sustained foreign exodus also weighed on the Korean won. In Seoul's onshore foreign exchange market, the won weakened 13.2 won against the U.S. dollar to close at 1,545.2. The currency finished daytime trading in the mid-1,540 range for the first time since March 9, 2009 in the aftermath of the 2008 global financial crisis.
In the afternoon, President Lee Jae Myung unveiled an 800 trillion won ($519 billion) plan to build a sprawling semiconductor cluster in the country's southwestern region as part of the state's flagship push into semiconductors, physical artificial intelligence (AI) and AI data centers.
The announcement briefly lifted sentiment on the main board. The KOSPI, which had remained in negative territory for most of the session after opening 0.91 percent lower at 8,334.28, temporarily turned positive in late-afternoon trading.
The rebound, however, proved short-lived as foreign investors continued to offload Korean equities. They sold more than a net 7.75 trillion won worth of shares — the largest daily net selloff on record. The index reversed course to close at 8,394.65, down 0.20 percent from the previous session, according to the Korea Exchange.
Losses in heavyweight technology stocks added to the pressure, with Samsung Electronics and SK hynix falling 4.86 percent and 1.68 percent, respectively.
The secondary bourse Kosdaq, by contrast, significantly outperformed the main board, surging more than 8 percent to close at 920.57, its biggest one-day gain since March 5. A buy-side sidecar was triggered at 9:28 a.m. as the index's rapid advance temporarily halted program buy orders for the 11th time this year.
The rally was led by rechargeable battery and biotechnology stocks as the government's investment blueprint boosted expectations for broader spending on AI infrastructure, robotics, data centers and pharmaceuticals. Buying spread beyond the large-cap chipmakers that had dominated recent gains to materials, parts and equipment suppliers as well as other growth stocks.
Market participants pointed to signs of sector rotation, with some funds shifting out of heavyweight semiconductor shares and into Kosdaq-listed growth companies, providing fresh momentum for the secondary market.