The KOSPI opened more than 2% lower on the 25th, hit by a broad selloff in U.S. chip stocks. Samsung Electronics (005930.KS) and SK hynix (000660.KS) both fell around 4% early in the session, widening the index's loss to more than 3% and pushing it below the 6,500 mark shortly after the open.
The KOSPI opened at 6,535.93, down 161.03 points, or 2.40%, from the previous session, according to the Korea Exchange. The KOSDAQ also began trading at 806.93, down 6.40 points, or 0.79%.
Selling pressure deepened after the open, led by chip stocks, and the KOSPI's decline widened further. As of 9:08 a.m., the index stood at 6,491.02, down 205.94 points, or 3.08%, from the previous session.
Among the largest stocks by market capitalization, losses at Samsung Electronics and SK hynix stood out. Samsung Electronics traded at 247,250 won, down 3.79%, while SK hynix plunged 4.97% to 1,588,000 won. Other chip-related stocks also fell across the board, including Samsung Electronics preferred shares (-3.43%), SK Square (-4.46%) and Samsung Electro-Mechanics (-5.01%).
The declines were attributed to a wave of selling centered on chip stocks in New York overnight. The Dow Jones Industrial Average rose 0.3%, but the Standard & Poor's 500 and the Nasdaq fell 0.3% and 0.8%, respectively. Micron Technology plunged 5.9% and SanDisk 6.5%, while Nvidia dropped 2.9%.
Analysts said a correction in chip stocks that followed Samsung Electronics' shareholder return plan spread to related U.S. names amid growing caution ahead of Nvidia's earnings report. With Nvidia recently posting losses for seven straight sessions, moves to trim positions before the results have also spread across the semiconductor sector.
The market views Nvidia's earnings report, scheduled for the 26th local time, as a key variable that will determine the near-term direction of chip stocks. Analysts said that if Nvidia's results and its outlook for artificial intelligence (AI) chip demand meet market expectations, investor sentiment toward chip stocks, including Samsung Electronics and SK hynix, could recover.
