On the 14th, the KOSPI fell more than 3% and slumped to the 6,680 level. A pullback in global AI (artificial intelligence) investment amid the burden of rising crude oil and interest rates triggered panic selling centered on large semiconductor stocks.
The KOSPI closed at 6,684.37, down 225.54 points (3.26%) from the previous trading day. The index opened at 6,692.61, down 217.30 points (3.14%) from the previous session. During the session, it looked like losses would narrow on buybacks by Samsung Electronics and SK hynix and inflows of household funds, but it retreated to the 6,680 level under heavy selling pressure from foreigners and institutions.
In the main board, foreigners and institutions were net sellers of 3.9243 trillion won and 1.6027 trillion won, respectively, putting strong pressure on the index. Among institutions, brokerages were net sellers of 1.0521 trillion won and private equity funds 329.9 billion won. By contrast, individuals and other corporations were net buyers of 4.0718 trillion won and 1.4553 trillion won.
The KOSDAQ market was also weak. The KOSDAQ index opened at 806.27, down 14.37 points (1.75%) from the previous trading day, and closed at 806.79, down 13.85 points (1.69%) from the previous trading day. In the KOSDAQ market as well, foreigners and institutions were net sellers of 134.7 billion won and 24.4 billion won, while individuals were net buyers of 148.4 billion won.
Investor sentiment toward stocks weakened as international oil prices and U.S. interest rates rose at the same time. International crude broke above $100 a barrel on supply disruptions from the shutdown of a Saudi Arabia east–west oil pipeline, and the U.S. 10-year Government Bonds yield surged to 4.975%.
On top of that, calls by key AI leaders to slow development and concerns about a slowdown in big tech's computing investment appear to have prompted outflows across the semiconductor industry.
Samsung Electronics (-4.05%), SK hynix (-6.35%), Samsung Electro-Mechanics (-4.50%), and SK Square (-8.17%)—semiconductor and IT-related stocks—plunged across the board. Samsung Life Insurance(032830) and Hyundai Motor(005380), LG Energy Solution and other major blue chips also fell.
U.S. stocks in New York rose across the board over the weekend. The August consumer price index (CPI) rose 3.4% from a year earlier, in line with market expectations, helping the market rebound after five sessions. But the domestic market failed to carry over the momentum as the impact of high oil and high interest rates and caution over corrections in AI tech stocks deepened.
Even amid broad index weakness, selective buying flowed into certain theme stocks. In optical communications such as optical cable and optical fiber, Vissem Electronics(072950) surged more than 26%, and TMC (17.37%), Lightron Fiber-Optic Devices (11.76%), WooriNet (7.11%), and Taihan Fiberoptics (2.40%) rose.
In deepfake and security AI, SANDS Lab (25.23%), Raonsecure (20.47%), Fasoo AI (12.98%), SP Soft (7.51%), ICTK (5.81%), and Secern AI (5.56%) were strong on expectations for developing security AI models and shareholder returns.
In K-beauty cosmetics, shares closed higher as the expansion of overseas distribution channels and solid global export results came into focus, including Aromatica (13.79%), Cosmecca Korea (4.22%), Amorepacific Co. (3.91%), Kolmar Korea Co. (3.40%), SILICON2 (3.10%), COSMAX Inc. (2.03%), and PharmaResearch (1.02%).