Korea Stock Market Wrap : Chip Shares Fall & What to Watch Next

South Korean equities suffered a sharp pullback on July 16, with the KOSPI falling 6.37% to 6,820.60 and the KOSDAQ dropping 4.53% to 791.84. Semiconductor stocks led the decline as SK hynix plunged 11.53% and Samsung Electronics lost 8.77%, following weakness in SK hynix ADRs and Micron.

Semiconductors Led the Selloff

TSMC reported strong second-quarter results, including a 77.4% year-over-year increase in net profit and 36% revenue growth. However, concerns over rising Chinese DRAM competition from CXMT outweighed the positive AI demand outlook for Korean memory stocks.

Selective Strength Remained

Shipbuilding stocks such as Hanwha Ocean and HD Korea Shipbuilding remained resilient, supported by expectations for stronger cooperation with the United States. Selected bio, banking and AI infrastructure stocks also outperformed, including Onconic Therapeutics, K Bank, SK Telecom and GNC Energy.

Kimi K3 launch and its impact on global AI and semiconductor stocks — Kimi K3 raised concerns about intensifying competition in the global AI market.

What Investors Should Watch Next

Friday’s release of Moonshot AI’s Kimi K3 added pressure to global technology and semiconductor sentiment by reviving concerns over another “DeepSeek moment.” Because the Korean market was closed when the news emerged, its full impact may be reflected when trading resumes. Rather than rushing to buy next week, investors may be better served by monitoring price action, foreign investor flows and the stabilization of major semiconductor stocks before responding.

This article is for informational purposes only and does not constitute investment advice.