South Korea’s benchmark Kospi index fell sharply on Tuesday as concerns over growing competition from Chinese chipmakers triggered a sell-off in technology stocks. The decline led to a temporary trading curb, with major semiconductor companies among the biggest losers, reported Reuters.
The sell-off came after US memory-chip maker Micron Technology fell overnight, following reports of rapid technological progress by Chinese rival ChangXin Memory Technologies (CXMT), fuelling concerns over rising competition in the global memory-chip industry, the report mentioned.
The Korea Exchange halted programme sell orders for five minutes at 9.47 am local time after the KOSPI 200 futures index fell 5.08%, or 51.20 points, to 955.02.
The Kospi was down 382.18 points, or 5.93%, at 6,002.06 as of 0213 GMT. A fifth consecutive session of losses would mark the index’s longest losing streak since September 2024.
South Korea’s major semiconductor stocks came under heavy selling pressure as investors assessed the threat from Chinese chipmakers.
Shares of Samsung Electronics fell 7.19%, while SK Hynix plunged 8.72%, reflecting concerns about the competitive position of South Korean memory-chip manufacturers.
According to the report, Kang Jin-hyuk, an analyst at Shinhan Investment & Securities, said investor sentiment had weakened amid concerns that Chinese semiconductor makers were narrowing the technology gap with global rivals.
The sell-off extended beyond technology stocks, with several major companies also recording sharp declines.
Battery maker LG Energy Solution fell 4.15%, while Hyundai Motor dropped 5.78% and Kia Corp declined 3.52%.
Market breadth remained sharply negative, with 832 stocks declining and 66 advancing among the 915 issues traded.
Foreign investors were net sellers of South Korean shares worth 2,065.3 billion won, adding to the pressure on the market.
The South Korean won weakened 0.22% to 1,338.8 per dollar on the onshore settlement platform, compared with its previous close of 1,335.8.
Government bond yields moved lower amid the market turmoil. The yield on the most liquid three-year Treasury bond fell 4.8 basis points to 3.874%, while the benchmark 10-year yield declined 6.9 basis points to 4.250%.
The sharp fall in the Kospi highlights growing investor concerns about intensifying competition in the global semiconductor industry, with advances by Chinese chipmakers adding to pressure on South Korea’s technology-heavy stock market.