(LEAD) Seoul stocks open sharply lower after record surge on profit-taking

Seoul stocks plunged sharply on Monday as investors cashed in on significant gains from the previous trading day. The Korea Composite Stock Price Index (KOSPI), a key benchmark, slipped 4.25 percent to 6,315.4 points by 9:15 a.m., opening 3.6 percent lower. This downturn contrasted with a Friday rally on Wall Street, driven by robust earnings from Amazon, particularly its cloud computing unit. Amazon's revenue in the second quarter saw a 37 percent increase, surpassing market forecasts.

Analysts predict that investors may opt for profit-taking early in the week, following Friday's staggering 17 percent surge, the largest single-day gain ever recorded. Han Ji-young, an analyst at Kiwoom Securities, noted this potential trend. Regional tensions eased as U.S. President Donald Trump announced that talks with Iran would resume on Monday, having initially called off a "massive attack" on Iran.

Among the affected sectors, chipmaker Samsung Electronics and SK hynix both fell by 6.48 percent and 6.69 percent, respectively. Battery manufacturer LG Energy Solution and financial firm KB Financial also saw declines, while defense firm Hanwha Aerospace experienced a slight gain of 0.55 percent. The Korean won strengthened slightly, exchanging at 1,433.3 won for the U.S. dollar, up from the previous session's rate.