South Korea shares rise on chip rebound after AI-led selloff

* KOSPI rises, foreigners net sellers* Korean won strengthens against dollar* South Korea benchmark bond yield risesSEOUL, - Round-up of South Korean financial markets:** South Korean shares rose 1% on Monday as chipmakers rebounded from an AI-driven selloff last week, with investorsshrugging off concerns surrounding Nvidia after assurances that the country's contracted GPU supplies would not be affected.** The benchmark KOSPI was up 1.57%, or 79.58 points, at 5,139.27 as of 0146 GMT.

On Friday, the index dropped 6% to its lowest close since March 31.** A senior South Korean official said issues currently affecting Nvidia would not affect South Korea's contracted supply of graphics processing units from the US AI chipmaker.** Wall Street recovered some ground on Friday, a day after fears about tighter US regulation of AI wiped trillions of dollars off world stock markets and triggered a dash for government bonds.** The semiconductor sector carries significant weight in South Korean equities, with memory-chip giants Samsung Electronics and SK Hynix among the market's biggest constituents and key beneficiaries of AI-related demand.** "Unless there is more bad news from macroeconomic and AI earnings events this week, it is unlikely a market crash like the one last week will repeat again," Han Ji-young, an analyst at Kiwoom Securities, said on Monday.** Shares of Samsung Electronics and SK Hynix rebounded from sharp losses to climb 2.9% and 4.7%, respectively.** Among other heavyweights, battery maker LG Energy Solution slid 2.37%, while Hyundai Motor and sister automaker Kia Corp were down 0.89% and 2.59%, respectively.** Steelmaker POSCO Holdings shed 0.19%, while drugmaker Samsung BioLogics rose 2.37%.** Of the total 910 traded issues, 408 shares advanced, while 445 declined.** Foreigners were net sellers of shares worth 512.1 billion won .** The won was quoted at 1,360.6 per dollar on the onshore settlement platform, 0.18% higher than its previous close at 1,363.0.** The most liquid three-year Korean treasury bond yield rose 2.4 basis points to 3.646%, while the benchmark 10-year yield rose 2.5 basis points to 3.877%.

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