Seoul shares extend losses late Thurs. morning on tech slump

South Korean stocks plummeted late Thursday morning, with investors offloading large-cap tech shares in response to a rise in the previous trading sessions. The benchmark Korea Composite Stock Price Index (KOSPI) fell 4.52 percent, closing at 6,299.88 points by 11:20 a.m. following an initial decline of 1.81 percent. The index had previously risen 1.62 percent and 3.76 percent on Tuesday and Wednesday, respectively, due to reduced worries about artificial intelligence (AI) profitability.

Consequently, the Korea Exchange (KRX) activated a sell-side sidecar for the KOSPI for five minutes at 10:18 a.m. to halt program trading for KOSPI-listed shares.

Wall Street's tech-heavy Nasdaq Composite also declined 0.83 percent, marking its first drop in five sessions. This decline was driven by setbacks for major tech companies such as Alphabet and Advanced Micro Devices. The Dow Jones Industrial Average continued its winning streak, partly due to reports that Iran and Oman had agreed on a route for ships navigating the Strait of Hormuz.

Several notable South Korean companies experienced significant losses. Samsung Electronics saw its shares drop 5.89 percent, while chipmaker SK hynix plummeted 8.75 percent. Samsung Electro-Mechanics, an electronics component subsidiary of Samsung Electronics, experienced a drop of 9.11 percent, and SK Square, the parent company of SK hynix, fell 11.62 percent. Other affected sectors included Hyundai Motor, which declined 2.35 percent, and energy firm Doosan Enerbility, which lost 1.69 percent.

Despite the overall decline, defense company Hanwha Aerospace experienced a 4.17 percent increase, and cosmetics manufacturer APR gained 4.34 percent, driven by strong second-quarter earnings. The Korean won was trading at 1,416.25 won per U.S. dollar as of 11:20 a.m., reflecting an 8.65 won increase from the previous day's closing price.