Chipmakers led a sharp selloff in South Korean equities Tuesday, as foreign investors reduced exposure amid rising US Treasury yields and a weak debut by data center firm Elice Inc. The benchmark Kospi fell as much as 4.8%, with memory giants SK Hynix Inc. and Samsung Electronics Co. among the biggest decliners. Losses were broad, with nearly all sectors trading lower, signaling growing investor concern over AI boom overheating and tightening financing conditions. The index is now down nearly 40% from its June record high.
Overseas traders sold $480 million in Kospi stocks within two hours, following a seven-basis-point climb in the 10-year US note to nearly 5.14%. The selloff extended even after Monday’s rebound, with battery makers — previously a bright spot — now retreating. Elice Inc., a data-center infrastructure company, plunged over 30% on its Kosdaq debut, adding to global concerns over AI funding sustainability, including recent IPO struggles like Nscale Ltd. in the US.
Meanwhile, SK Hynix faces scrutiny over a potential US IPO of its Solidigm unit, with a Korean regulator examining whether it would constitute a “duplicate listing” — a move minority shareholders oppose due to fears of value erosion.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing