Seoul stocks close over 3 pct lower amid Samsung's shareholder return plan

Seoul stocks experienced a sharp decline on Monday, falling over 3 percent as investors reacted negatively to Samsung Electronics' shareholder return plan. This had a significant impact on semiconductor-related stocks. The Korea Composite Stock Price Index (KOSPI) fell 215.99 points, or 3.12 percent, to 6,696.96. The declines were primarily driven by large-cap tech shares, which faced selling pressure from foreign and institutional investors.

Analyst Lee Kyoung-min from Daishin Securities attributed the selling to disappointment over Samsung's shareholder return plan, which was announced the previous week. The plan, valued at between 90 trillion won and 110 trillion won, included a projected cash dividend of around 30 trillion won in the third quarter. However, the lack of details regarding a potential stock buyback appeared to disappoint investors.

Analysts are also monitoring external factors, such as Nvidia's upcoming earnings release and the latest economic data from the United States, where the service sector showed strong growth in August.