19.08.202502:30:39UTC+00South Korean Shares Decline on Global Caution

On Tuesday, the KOSPI index dipped by 0.2% to approximately 3,170, marking a two-week low due to a combination of lackluster performance in overseas markets and escalating geopolitical tensions. The mixed closing on Wall Street the previous night offered limited guidance for Asian investors, prompting continued caution. Additionally, the sharp decline in Intel shares, spurred by rumors of a potential US government stake, heightened concerns over potential policy interventions in the technology sector, putting pressure on local semiconductor companies. Meanwhile, investors are closely monitoring the forthcoming earnings reports from major US retailers for insights into consumer demand, a significant factor influencing South Korea's export-driven economy. Domestically, geopolitical stress intensified following North Korean leader Kim Jong Un's commitment to bolstering the nuclear arsenal and his denunciation of joint US–South Korea military exercises, which this year include intensified reactions to North Korean threats. Within the corporate realm, losses were widespread across sectors such as finance, technology, chemicals, and industrials, with notable declines in companies like SK Hynix, LG Energy Solution, Hanwha Aerospace, Doosan Enerbility, and HD Hyundai Heavy Industries.