Korea's stock market faced strong correction pressure shortly after opening, as overnight semiconductor peak concerns from the New York market combined with fatigue from recent rallies. Foreigners unleashed a flood of sell orders exceeding 1 trillion won from early trading, sending the KOSPI battling around the minus 2 percent line. While leading stocks such as semiconductors and automakers slumped, defense shares alone posted strong gains, reflecting lingering geopolitical risks.
On Wednesday, the KOSPI opened down 90.38 points, or 1.20 percent, at 7,425.66, then widened its losses to around minus 2 percent as foreign selling intensified.
By investor type, foreigners' selling stance was forceful. Foreigners net sold around 1 trillion won within just 15 minutes of the opening, dragging down the index. Individuals, by contrast, net bought more than 970 billion won, actively absorbing the volume, while institutions also bought around 30 billion won. But this was not enough to halt the index's decline. The KOSDAQ, meanwhile, opened flat at 1,111.36, up 0.27 point, or 0.02 percent, from the previous session, and held a slight gain.
Large-cap stocks at the top of the market capitalization rankings weakened across the board, leading the index lower. As of 9:10 a.m., the semiconductor sector saw Samsung Electronics (005930.KS) fall 3.02 percent in the wake of the plunge in U.S.-based Micron, while SK hynix (000660.KS) also could not avoid declines, slipping 1.74 percent. Hyundai Motor Group shares, which had recently surged on the robot theme, also fell into a slump. Hyundai Motor (005380.KS) plunged 5.28 percent, while Kia (000270.KS) dropped 3.14 percent and Hyundai Mobis (012330.KS) fell 4.03 percent. LG Electronics (066570.KS), which had also staged a short-term surge on robot business expectations, slid 7.83 percent in the face of strong profit-taking.
Power and cable-related stocks, which had surged in the pre-market on expectations of benefits from supply chain regulations, also lost momentum once trading began. LS Electric (010120.KS) turned down 1.97 percent, while Doosan Enerbility (034020.KS) fell 2.05 percent and Hyosung Heavy Industries (298040.KS) dropped 0.56 percent, turning lower and reflecting the broader market slump.
Amid a falling market that nearly wiped out large-cap stocks, the defense sector was on fire. The gains are attributed to renewed attention on Korean defense companies' global order momentum, as Middle East tensions persisted following U.S. President Donald Trump's announcement of a hold on the attack against Iran. Hanwha Aerospace (012450.KS), the leading defense stock, jumped 6.76 percent, posting strength even amid the index's sharp decline. LIG Defense and Aerospace (079550.KS) rose 3.46 percent, Korea Aerospace Industries (047810.KS) gained 2.41 percent, and Hyundai Rotem (064350.KS) advanced 1.99 percent, all flashing green.
