The KOSPI is plunging by more than 7% today (the 28th) amid the fallout from a sharp decline in U.S. semiconductor stocks.

As of 9:20 a.m. today, the KOSPI stands at 6,285.99, down 469.76 points from the previous day.

The downward trend subsequently widened to the 7% range.

The index opened at 6,400.27, down 355.48 points from the previous session, and widened its losses, sequentially giving up the 6,400 and 6,300 points levels.

At one point during early trading, it dropped as low as 6,245.70.

This is the first time in about three months since April 20 that the KOSPI has fallen below the 6,300 mark during intraday trading.

Due to the steep plunge, a temporary suspension of program sell orders (sidecar) was triggered at around 9:06 a.m.

Foreigners have been net sellers for three consecutive trading sessions up to today, while retail investors are buying.

On the main bourse, foreign investors currently show a net selling volume of 742.8 billion won.

Institutions also joined in dragging down the index with a net selling superiority of 165.4 billion won.

Conversely, retail investors maintain a net buying volume of 889.6 billion won.

Foreigners also showed a net selling superiority of 93.2 billion won in the KOSPI 200 futures market.

Overnight on Wall Street, semiconductor stocks weakened once again, pulling the tech-heavy Nasdaq Composite Index down by 0.18%.

ASML plunged 5.80% amid growing concerns over intensifying global competition following news that China has embarked on developing deep ultraviolet (DUV) lithography equipment used in semiconductor manufacturing.

Nvidia, Sandisk, and Micron declined, and the Philadelphia Semiconductor Index dropped 2.23%.

SK Hynix American Depositary Receipts also plummeted 7.47%.

Analyses suggest that the listing of Chinese semiconductor firm ChangXin Memory Technologies (CXMT) on the Shanghai Stock Exchange yesterday is also affecting the supply and demand dynamics for Samsung Electronics and SK Hynix.

Seo Sang-young, a senior managing director at Mirae Asset Securities, explained, "The market evaluated that if China succeeds in localizing the lithography process—widely considered the highest technological barrier in semiconductor manufacturing—localization of other process equipment could also proceed rapidly." He added, "As these changes highlighted China's expansion of memory production capacity and intensified global semiconductor competition, profit-taking spread across the entire AI semiconductor value chain."

Meanwhile, international oil prices plummeted on news that the U.S. has halted airstrikes against Iran.

Brent crude futures for September delivery settled down 8.7% from the previous session, and West Texas Intermediate (WTI) crude futures also fell 7.5% from the previous session.

While high oil prices, previously pointed out as one of the causes of recent stock market instability, have eased somewhat, investor sentiment is interpreted to have weakened as noises surrounding AI and semiconductors continue.

Consequently, the domestic stock market is continuing its sharp decline, spearheaded by semiconductor duopolies Samsung Electronics and SK Hynix.

The fact that SK Hynix's earnings announcement is slated for tomorrow (the 29th) also appears to have heightened caution.

Samsung Electronics has pulled back to the 230,000 won range, while SK Hynix has receded to the 1.62 million won range.

Both stocks are recording levels close to their lowest points for this month.

SK Square and Samsung Electro-Mechanics are plunging by over 10%, and a significant number of other top market capitalization stocks, such as Hyundai Motor and LG Energy Solution, are also declining.

Only a few, including Samsung Biologics and Celltrion, are showing strength.

By sector, the vast majority of industries such as electrical/electronics, manufacturing, and communications are declining.

Only pharmaceuticals and real estate are posting slight gains.

At the same time, the Kosdaq index stood at 726.87, down 37.99 points.

The Kosdaq also subsequently saw its decline widen to the 5% range.

The index opened at 742.13, down 22.73 points, and is widening its downward trajectory.

Due to the steep plunge, a sell sidecar was also triggered in the Kosdaq market.

Foreign investors in the Kosdaq market also show a net selling volume of 9.6 billion won.

Institutions also posted a net selling superiority of 20.6 billion won.

Only retail investors showed a net buying volume of 32.6 billion won.

Top market capitalization companies within the Kosdaq market that showed upward momentum yesterday—such as Alteogen, EcoPro, EcoPro BM, Rainbow Robotics, and Jusung Engineering—are declining again today.
 
(Photo: Yonhap News)