Since the emergence of the Chinese startup "DeepSeek," the global generative artificial intelligence (AI) market has been significantly impacted, and it seems that Alibaba is delivering a shock to the global semiconductor and financial markets. News that Alibaba, China's largest e-commerce company, has developed its own AI semiconductor has led to a decline in global technology stocks.
In the domestic stock market, major semiconductor stocks dropped collectively, causing both the KOSPI and KOSDAQ indices to fall by more than 1%.
On the 1st, the KOSPI index closed at 3142.93, down 43.08 points (1.35%) from the previous trading day. The KOSPI index has fallen back below the 3140 mark for the first time in seven trading days since August 21 (closing price 3141.74).
On this day, foreign investors and institutions sold a net 272.1 billion won and 193.7 billion won worth of stocks, respectively, dragging down stock prices. Only individual investors acquired a net 346.7 billion won worth of stocks. Foreign investors have shown a "selling trend" for five consecutive trading days since August 26, totaling a net sell-off of 1.55 trillion won during this period.
The news that Alibaba has manufactured next-generation AI chips has worsened investor sentiment. This news also led to a significant decline in technology stocks in the U.S. stock market over the weekend. The U.S. Department of Commerce's announcement that major semiconductor corporations, such as Samsung Electronics and SK hynix, must obtain individual permits to import U.S.-made semiconductor equipment into their factories in China from next year (repeal of the VEU system) has further dampened investor sentiment.
On this day, SK hynix plummeted nearly 5%, while Samsung Electronics and HANMI Semiconductor fell by 3.01% and 6.32%, respectively.
Among other top market capitalization items, HD Hyundai Heavy Industries (-1.92%), KB Financial (-1.02%), LG Energy Solution (-0.85%), and Samsung Biologics (-0.50%) also declined. Conversely, Hanwha Aerospace (3.62%), Kia (0.66%), and Hyundai Motor (0.23%) increased.
The KOSDAQ index closed at 785.00, down 11.91 points (1.49%) compared to the previous trading day. On that day in the KOSDAQ market, foreign investors sold a net 55.9 billion won worth of stocks, while individuals and institutions bought stocks worth 68.5 billion won and 4.1 billion won, respectively.
Among the top market capitalization stocks in the KOSDAQ, LigaChem Biosciences and Sam Chun Dang Pharm fell by over 4%, while Peptron and PharmaResearch showed a decline in the 3% range. Rainbow Robotics (-2.01%), Ecopro (-1.38%), ABL Bio (-1.20%), and ECOPRO BM (-1.07%) also decreased. Alteogen (3.76%) and HLB (2.52%) finished up.
Lee Jae-won, a researcher at Shinhan Investment Corporation, noted, "In the absence of clear bullish signals in the stock market, the impact of Alibaba has increased downward pressure on large semiconductor stocks," adding, "KOSDAQ also saw weakness in semiconductor materials, components, and equipment (so-called 'three supplies')."
However, he mentioned that there are also expectations for a market rebound in the future. The researcher stated, "We need to check the U.S. August employment report and consumer price index among other indicators in September" and suggested, "If a U.S. rate cut coincides with a reversal of domestic policies, we might see new highs beyond the box-range market in September."