Kospi Opens Lower at 6,700 as Middle East Risks Weigh on Chip Shares

Samsung Electronics rises early while SK Hynix falls

South Korea’s Kospi traded lower in early dealings on July 14, hovering around the 6,700 level as surging oil prices and weakness in US semiconductor stocks damped risk appetite. The moves followed escalating military tensions between the US and Iran.

As of 9:04 a.m., the Kospi was down 60.04 points, or 0.88%, at 6,746.89.

US stocks closed broadly lower overnight as Middle East geopolitical risks intensified. Oil prices jumped after US President Donald Trump said he would resume a maritime blockade against Iran and impose transit fees on ships passing through the Strait of Hormuz. The Dow Jones Industrial Average fell 0.26%, the S&P 500 dropped 0.79%, the Nasdaq lost 1.55%, and the Philadelphia Semiconductor Index sank 4.78%.

On the Kospi, foreign and institutional investors were net buyers of 853.1 billion won and 756 billion won, respectively. Individuals were net sellers of 1.593 trillion won.

Performance among the largest companies was mixed. Samsung Electronics rose 0.59%, KB Financial gained 0.78%, and Shinhan Financial Group advanced 2.03%. SK Hynix fell 1.63%, SK Square lost 2.07%, Samsung Electro-Mechanics dropped 2.17%, Hyundai Motor slid 4.84%, LG Energy Solution declined 1.67%, Samsung Biologics fell 2.43%, Samsung Life Insurance tumbled 5.98%, and Hanwha Aerospace dropped 3.42%.

The Kosdaq also moved lower. As of the same time, the index had fallen 9.13 points, or 1.14%, to 790.23.

On the Kosdaq, foreign and institutional investors were net sellers of 21 billion won and 20 billion won, respectively. Individuals were net buyers of 900 million won.

Among large-cap Kosdaq stocks, Alteogen fell 8.06%, EcoPro BM dropped 2.17%, EcoPro lost 3.23%, Rainbow Robotics slid 3.61%, Kolon TissueGene declined 4.70%, Wonik IPS fell 2.48%, and LigaChem Biosciences dropped 5.21%. JUSUNG ENGINEERING rose 2.52%, PSK gained 5.85%, Leeno Industrial added 1.52%, EO Technics climbed 2.50%, Simmtech advanced 1.11%, and TES rose 2.90%.

In Seoul trading, the won was at 1,498.5 per dollar, down 1 won from the previous session’s daytime close.

Kim Yeon-ji, Hankyung.com reporter kongzi@hankyung.com