[Edaily Reporter Park Sun-Yeop ] The KOSPI fluctuated between gains and losses early in the session but turned downward as foreign selling pressure intensified. The ripple effects from last night’s weakness in U.S. artificial intelligence (AI) semiconductor stocks have spread to major domestic semiconductor stocks, causing overall investor sentiment to wane once again.
According to MP Doctor on the 3rd, as of 9:37 a.m. today, the KOSPI stood at 7,558.73, down 89.36 points (1.17%) from the previous trading day.
Foreign selling is exerting downward pressure on the index. On the stock market, foreign investors are net sellers of 9074억 won worth of shares. In contrast, retail investors and institutions are net buyers of 4935억 won and 3661억 won worth of shares, respectively. Program trading, combining arbitrage and non-arbitrage trades, shows a net selling position of 2552억 won.

Overnight, major indices on the New York Stock Exchange showed mixed trends. While the Dow Jones Industrial Average hit a new all-time high, AI semiconductor stocks continued their downward trend for the second consecutive day. This is interpreted as a result of both profit-taking and sector rotation, driven by growing doubts about the sustainability of the rally in the semiconductor sector, which has surged sharply in recent months.
The Dow Jones Industrial Average closed at 52,900.07, up 594.83 points (1.14%) from the previous trading day. The S&P 500 index closed at 7,483.24, up 0.01 points (0.00%). In contrast, the Nasdaq Composite Index closed at 25,832.67, down 207.36 points (0.80%).
Analysts in the securities industry believed that the continued weakness in the U.S. Philadelphia Semiconductor Index and the 1% decline in KOSPI 200 overnight futures could weigh on the domestic stock market in early trading. While the perception that the KOSPI’s 7% plunge the previous day was an oversold reaction and the diminished expectations for a September interest rate hike by the Federal Reserve (Fed) were cited as factors supporting a rebound, supply-and-demand conditions remained volatile in early trading.
Han Ji-young, an analyst at KIWOOM Securities, said, “This is a critical moment to distinguish whether the sharp decline in the semiconductor sector stems from damaged fundamentals or is merely market noise,” adding, “I believe it is an overreaction to interpret reports of Meta’s entry into the cloud business—utilizing its surplus computing power—as a sign of excessive AI investment and to feel anxious as a result.”
Han continued, “Given that investor sentiment has cooled in the short term, we are in a phase where the market may react more sensitively than usual to negative news,” explaining, “We must remain open to the possibility of increased volatility across the broader market from time to time, as well as the potential for additional buy- and sell-side circuit breakers.”
However, he noted, “We believe that a slowdown in AI demand has not yet materialized, and the earnings fundamentals of the KOSPI—including the semiconductor sector—remain intact,” adding, “It is also important to consider that events capable of reversing the market sentiment, such as SamsungElectronics’ preliminary earnings announcement and SK hynix’s ADR listing next week, are on the horizon.”
He advised that, at this point, rather than betting on a price decline, a more effective strategy would be to prepare for a potential index rebound by gradually buying into sectors that saw significant declines the previous day—such as semiconductors, MLCCs, securities, and power equipment.
By market capitalization, all segments are trading lower. Large-cap stocks are down 2.50%, while mid-cap and small-cap stocks are falling 2.81% and 1.63%, respectively.
By sector, declining sectors are in the majority. The construction sector is down 5.94%, while the medical/precision instruments and machinery/equipment sectors are down 5.46% and 5.21%, respectively. In contrast, the pharmaceutical sector is up 1.31%, showing relatively steady performance.
Top-market-cap stocks are also generally underperforming. SamsungElectronics(005930)is trading at 285,000 won, down 1,000 won (0.35%) from the previous trading day. SK hynix(000660)is trading at 2,104,000 won, down 83,000 won (3.80%).
SKSQUARE(402340) SamsungElectroMechanics(009150)(-9.87%), (-4.25%), and (-3.11%) are also trading lower. On the other hand, (1.99%) and (0.91%) are rising. HyundaiMotor(005380) LG Energy Solution(373220) SAMSUNG BIOLOGICS(207940) KB Financial Group(105560)
The KOSDAQ index is also extending its losses. As of this writing, the KOSDAQ index stands at 838.51, down 28.21 points (3.25%) from the previous trading day.
In the KOSDAQ market as well, foreign investors are net sellers of 37.8 billion won worth of stocks. Retail investors and institutions are net buyers of 6.1 billion won and 27.7 billion won, respectively. Program trading, combining arbitrage and non-arbitrage trades, shows a net selling position of 71.5 billion won.