(LEAD) Seoul stocks snap 3-day rise on tech slump

Seoul stocks experienced a sharp decline on Friday, ending their three-day upward trend, as investors sold off tech stocks due to external uncertainties, including Washington's trade policy. The Korean Composite Stock Price Index (KOSPI) dropped by 123.49 points, or 1.79%, to 6,788.88. Trade volume was relatively low, with 287.6 million shares worth 19.9 trillion won ($14.5 billion).

Investors were more cautious due to these external factors, with foreign and institutional investors net sellers, offloading a combined 2 trillion won. Retail investors, however, bought a net 424.36 billion won.

Investor sentiment was affected by the upcoming Jackson Hole meeting, where U.S. Federal Reserve Chair Kevin Warsh was set to give his first keynote speech. The meeting could provide insights into the central bank's future policy direction. Meanwhile, the United States and Iran were not in talks to end the conflict, and there were indications that Washington might impose another round of tariffs on semiconductors, further adding to market uncertainties.

Tech shares took a hit, with Samsung Electronics falling 3.38% to 257,000 won and its rival SK hynix dropping 4.45% to 1,653,000 won. On the other hand, cosmetics firm APR surged by 6.21% to 461,500 won, driven by strong earnings, and refiner S-Oil rose 9.14% to 149,200 won, amid renewed tensions in the Middle East. Bio firm Samsung Biologics, however, saw a decline of 6.65% to 1,486,000 won after announcing a 3 trillion won rights offering.

The Korean won appreciated against the U.S. dollar, reaching 1,372.5 won, an increase of 8.4 won from the previous trading session.