Seoul Stocks Slide Over 2% as Chipmakers Retreat After US Tech Sell-Off

The benchmark Korea Composite Stock Price Index (KOSPI) opened 2.36 per cent lower and fell 135.29 points, or 2.44 per cent, to 5,398.48 by 11:20 a.m. local time, according to Yonhap News Agency.

The decline followed a mixed session on Wall Street, where losses among major technology companies weighed on broader market sentiment.

US technology stocks weigh on Seoul market

Overnight, the Dow Jones Industrial Average edged up 0.02 per cent, while the S&P 500 declined 1.21 per cent. The technology-heavy Nasdaq Composite dropped 2.6 per cent.

Among major US semiconductor stocks, Micron Technology plunged 6.26 per cent, while Nvidia and Intel fell 4.4 per cent and 8.04 per cent, respectively.

The weakness spilled over into Seoul, where large-cap shares came under pressure. Samsung Electronics declined 3.03 per cent, while SK hynix shed 0.25 per cent.

SK hynix pared some of its earlier losses after announcing that it had decided to suspend plans to list its US subsidiary, Solidigm.

Shares of SK Square, an investment company with exposure to the semiconductor group, edged down 0.4 per cent following the announcement.

Solidigm IPO plans put on hold

SK hynix said it had decided to halt its review of a pre-IPO fundraising round and a subsequent initial public offering (IPO) for Solidigm, citing prevailing capital market conditions.

Reports had suggested that Solidigm was considering a US listing as early as next year, potentially valuing the subsidiary at up to $150 billion.

Solidigm operates within a corporate structure in which SK Square is the parent company of SK hynix, which owns Solidigm. The proposed listing had raised concerns about the so-called holding company discount, a situation in which a parent company's market valuation falls below the combined perceived value of its underlying assets.

Won strengthens against the dollar

In currency markets, the South Korean won traded at 1,324 per US dollar as of 11:20 a.m. local time, strengthening by 2.5 won from the previous trading session.

Market sentiment remained under pressure as investors assessed the impact of the US technology sell-off on Asian semiconductor shares. The performance of major chipmakers and developments surrounding AI-related investment are likely to remain key factors influencing trading in the region.