Why did Seoul shares fall sharply late Thursday morning?

Investors dumped large-cap tech shares after the market had risen in the previous two sessions. The article says the KOSPI’s earlier gains were driven by eased concerns over AI profitability, but tech stocks led Thursday’s decline.

What happened to the KOSPI and major tech stocks by 11:20 a.m. Thursday?

The KOSPI fell 298.38 points, or 4.52 percent, to 6,299.88 as of 11:20 a.m. Samsung Electronics dropped 5.89 percent and SK hynix fell 8.75 percent, while Samsung Electro-Mechanics and SK Square also posted steep declines.

What market action did the Korea Exchange take during the sell-off?

The Korea Exchange activated a sell-side sidecar for five minutes at 10:18 a.m. The halt applied to KOSPI-listed shares and paused program trading during the sharp drop.

Seoul shares extend losses late Thursday morning on tech slump

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Summary

Seoul shares extended losses late Thursday morning as investors dumped large-cap tech stocks in Seoul. The benchmark KOSPI fell 298.38 points, or 4.52 percent, to 6,299.88 as of 11:20 a.m. The Korea Exchange activated a sell-side sidecar for five minutes at 10:18 a.m. Samsung Electronics and SK hynix led the decline, while the won traded at 1,416.25 per dollar.

Key Facts

The KOSPI had risen 1.62 percent on Tuesday and 3.76 percent on Wednesday before the sharp drop on Thursday morning.
The Korea Exchange activated a sell-side sidecar for KOSPI-listed shares for five minutes at 10:18 a.m., halting program trading.
Samsung Electronics fell 5.89 percent and SK hynix slumped 8.75 percent as tech shares led the decline.
Samsung Electro-Mechanics plunged 9.11 percent and SK Square dived 11.62 percent.
The won was trading at 1,416.25 against the U.S. dollar, up 8.65 won from the previous stock market close.

By Yonhap

Published Aug 6, 2026 9:22 am KST
Updated Aug 6, 2026 11:36 am KST

The benchmark KOSPI is displayed at a dealing room of Hana Bank in Seoul, Thursday. Yonhap

Korean stocks fell sharply late Thursday morning as investors dumped large-cap tech shares following a rise in the previous sessions.

After opening 1.81 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) extended losses, falling 298.38 points, or 4.52 percent, to 6,299.88 as of 11:20 a.m.

The index had risen 1.62 percent and 3.76 percent on Tuesday and Wednesday, respectively, driven by eased concerns over artificial intelligence (AI) profitability.

As the index suffered a sharp loss, the Korea Exchange (KRX) activated a sell-side sidecar for the KOSPI for five minutes at 10:18 a.m., halting program trading for KOSPI-listed shares.

Overnight on Wall Street, the tech-heavy Nasdaq Composite lost 0.83 percent, its first decline in five sessions, as tech heavyweights, including Alphabet and Advanced Micro Devices, lost ground.

The Dow Jones Industrial Average extended its winning streak amid news reports that Iran and Oman have agreed on a route for ships transiting the Strait of Hormuz.

In Seoul, tech shares led the decline.

Market bellwether Samsung Electronics sank 5.89 percent, and its chipmaking rival SK hynix slumped 8.75 percent.

Samsung Electro-Mechanics, an electronics component affiliate of Samsung Electronics, plunged 9.11 percent, and SK Square, the parent of SK hynix, dived 11.62 percent.

Top carmaker Hyundai Motor dropped 2.35 percent, and leading energy firm Doosan Enerbility lost 1.69 percent.

However, defense giant Hanwha Aerospace rose 4.17 percent, and cosmetics maker APR jumped 4.34 percent on its solid second-quarter earnings.

The Korean won was trading at 1,416.25 won against the U.S. dollar as of 11:20 a.m., up 8.65 won from the close of stock trading the day before.

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