On the 14th, the KOSPI index closed down more than 3%, amid growing concerns over a potential interest rate hike ahead of the Federal Open Market Committee (FOMC) regular meeting and a sharp surge in international oil prices triggered by tensions in the Middle East. Foreign investors and institutional investors sold off stocks worth a net total of 4.4614 trillion won, exerting downward pressure on the index.
Most top market capitalization stocks, including major semiconductor companies such as Samsung Electronics and SK Hynix, declined.
The KOSPI index closed at 6,684.37, down 225.54 points (3.26%) from the previous day. While individual investors bought stocks worth a net total of 2.9745 trillion won, foreign investors and institutional investors sold off stocks worth a net total of 3.2875 trillion won and 1.1739 trillion won, respectively.
Samsung Electronics closed down 4.05% at 249,000 won per share. SK Hynix closed down 6.35% at 1.697 million won per share.
Other stocks that declined included SK Square (-8.17%), Samsung Electronics Preferred (-5.12%), Samsung Electro-Mechanics (-4.50%), Hyundai Motor (-2.88%), and LG Energy Solution (-2.36%).
The sharp decline today is attributed to the U.S. August core consumer price index (CPI), released on the 11th (local time), which rose 0.3% from the previous month, exceeding market expectations of 0.2%, thereby increasing the likelihood of an interest rate hike by the Federal Reserve. According to the CME FedWatch Tool, which reflects interest rate expectations in the futures market, there is an 86% probability that the base rate will be raised at the September FOMC meeting scheduled for the 15th–16th (local time).
A sharp rise in international oil prices due to Middle East instability also weighed on the stock market. Reports indicated that a key pipeline connecting Saudi Arabia's east and west had been shut down following a drone attack, and additional ships passing through the Strait of Hormuz were reportedly targeted.
Pessimistic remarks from companies related to the artificial intelligence (AI) sector dampened investor sentiment. Kang Jin-hyuk, a researcher at Shinhan Investment Corp., stated, "Anthropic and Elon Musk have raised concerns about the need to slow down in addressing AI safety issues, and OpenAI also withdrew its planned listing this year for similar reasons." He added, "U.S. President Donald Trump, who views AI as a strategic asset, has countered these claims, while NVIDIA is reportedly considering investing $10 billion in Anthropic's initial public offering (IPO), keeping the debate ongoing."
Conversely, there are expectations that buying pressure may flow into semiconductor stocks at lower prices, driven by optimism over AI demand and memory sector prospects. Han Ji-young, a researcher at Kiwoom Securities, said, "This week's domestic stock market is expected to see increased short-term volatility ahead of major monetary policy events." He continued, "If the U.S. 10-year Treasury yield stabilizes below 5% and foreign investors resume net buying, the stock market could continue its recovery trend." He further noted, "Given that recent expectations for AI demand and memory sector performance remain intact, there is a possibility that buying pressure centered on semiconductor stocks will support the lower bound of the index even during this correction phase."
The KOSDAQ index closed at 806.79, down 1.69%. Individual investors bought stocks worth a net total of 109.4 billion won, while foreign investors and institutional investors sold off stocks worth a net total of 93.1 billion won and 30 billion won, respectively.
Stocks that declined included EcoPro BM (-5.80%), Simtek (-4.95%), IOTech (-3.93%), Rainbow Robotics (-3.56%), EcoPro (-3.44%), AlteoGen (-2.99%), Rino Industrial (-1.96%), Juseong Engineering (-1.44%), and Wonik IPS (-0.18%).
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