Seoul stocks dip over 5 pct on chip sell-off after record surge

Seoul's stock market experienced a significant decline on Monday, dropping more than 5% in value. The Korea Composite Stock Price Index (KOSPI) lost 338 points, or 5.12%, to reach 6,257.45. This downturn came after the index had surged nearly 18% the previous day. The main cause of the sell-off was profit-taking by foreign investors, particularly in semiconductor stocks, according to Lee Kyoung-min, an analyst from Daishin Securities.

Shares of two major chipmakers, SK hynix and Samsung Electronics, had risen close to the daily limit on Friday due to expectations that leveraged exchange-traded funds would soon be unwound. Some relief came for investors when oil prices fell, following U.S. President Donald Trump's announcement that he had cancelled a potentially large-scale military strike on Iran.