[Market Opening] KOSPI starts sharply down 2.66%, breaking below the 7500 level... Won-dollar exchange rate starts at 1530 won.

The domestic stock market collapsed at the opening, unable to withstand heavy selling pressure centered on semiconductor stocks triggered by the New York Stock Exchange, along with additional shockwaves from China’s artificial intelligence (AI) risk from DeepSeek. With Samsung Electronics and SK Hynix—two of the top semiconductor leaders that account for a substantial share of total market capitalization—falling sharply together, the KOSPI index plunged straight down below the 7,500 level immediately after the opening.

On Aug. 8 in the Seoul foreign exchange and stock markets, the KOSPI index opened at 7,452.48, a drop of 2.66% (203.49 points) from the previous trading day. The aftermath of the previous session’s intensified selling pressure that had once triggered a circuit breaker was not fully resolved. Against that backdrop, the sharp selloff in U.S. tech stocks overnight and the downward pressure on semiconductor indices are being transmitted to the Korean market at the start of trading.

The KOSDAQ index is also staying on the weak side. The KOSDAQ opened at 816.39, down 1.79% (14.88 points) from the previous trading day, and is accelerating its downtrend. The deterioration in investment sentiment across tech stocks and growth stocks is pushing both South Korea’s two major markets—KOSPI and KOSDAQ—into a deep slump.

Foreigners and institutions “dump growth stocks” vs. individuals alone “buying the dip with tears”

The main factor driving the market rout in the early trading session is the relentless, two-pronged selling by foreign investors and institutional investors. Meanwhile, individual investors are trying to absorb the selling to build an upward support line, but they appear unable to withstand the barrage of sell orders from institutions and foreigners.

Foreign investors are leading the decline, recording net selling of about 420 billion won immediately after the market opened. In line with the trend of reducing exposure to risk assets within global portfolios, they are sharply expanding their selling, centered on the electrical and electronics sector.

Institutional investors are also joining the selling move by dumping about 310 billion won worth of stocks into the market on the trading floor, led by financial investment and investment trust firms. In particular, the selling is concentrated on semiconductors and large information technology (IT) items.

By contrast, individual investors are recording a net buying lead of about 710 billion won on their own, defending the index against the rapid plunge. Some individuals, interpreting the sharp drop as a short-term oversold condition, stepped in with bargain buys, but the selling force is so strong that the index-defense effect is minimal.

In the KOSDAQ market as well, foreign investors recorded net selling of about 110 billion won in the early part of trading, shrinking their positions mainly in large-cap bio and secondary battery stocks by market cap. Institutional investors are also maintaining a net selling trend of about 85 billion won, putting downward pressure on the index. Individual investors are filling net buys of more than 190 billion won even on KOSDAQ, taking in the shares that foreigners and institutions have offloaded.

Semiconductor “twin giants” collapse together… all “red” among top market-cap stocks

What market experts feared most—an actual collapse of major tech stocks—has become reality. In addition to concerns about Samsung Electronics’ earnings slowdown, weakness in U.S. semiconductor stocks and doubts about the global AI profitability resulting from DeepSeek’s technological assault are directly targeting the domestic semiconductor value chain.

Samsung Electronics, the flagship company, opened at 283,500 won, down 4.22% from the previous trading day, delivering a major shock to the market. Despite news of internal labor-management agreements such as announcements regarding performance bonus payments, it has not been able to overcome the enormous selling pressure driven by fears about the global industry outlook.

SK Hynix, which is up for a test ahead of the major event of listing American Depositary Receipts (ADRs), opened at 2,093,000 won, plunging 4.91% from the previous trading day. Despite its dominant position in the high-bandwidth memory (HBM) market, it could not avoid the blade of global tech stock multiple adjustments.

Leading secondary battery stocks such as LG Energy Solution (-1.85%) and POSCO Holdings (-2.10%) are also accelerating their weakness as uncertainties surrounding U.S.-origin infrastructure and electric vehicle subsidy policies persist.

Samsung Biologics (-1.15%), Hyundai Motor (-1.42%), and Kia (-1.68%) also opened lower as index-linked selling emerged following the index’s sharp drop. Among the top 10 stocks by market capitalization in the Korea Composite Stock Price Index (KOSPI), there were no stocks showing gains.

Pressure to break the 1,530 won mark for the won-to-dollar exchange rate… stoking a further stock-market exit

Alongside the stock market’s plunge, the won-to-dollar exchange rate in Seoul’s foreign exchange market is swinging again. As uncertainty in global financial markets rises, the money-move rush toward the dollar—representative safe-haven currency—has intensified.

On the Seoul foreign exchange market on this day, the won-to-dollar exchange rate started trading at 1,530.0 won, up 8.5 won from the previous trading day’s closing price. In early trading, demand from foreign investors to convert the funds obtained from selling domestic stocks into dollars is pouring in, strongly pushing up the exchange rate.

As the exchange rate threatens the 1,530 won level, foreign investors’ concerns about foreign-exchange losses have grown even further, which is acting again as a “vicious cycle” that encourages further selling of domestic stocks. Foreign exchange dealers expect that, for the time being, the won-to-dollar exchange rate’s volatility will be maximized as psychological resistance levels break down due to the U.S. Federal Reserve’s prolonged high-interest-rate stance, the possibility of a full-scale trade tariff war, and the approaching deadline for South Korea-U.S. trade consultations.

Stock market experts say this plunge is not just a simple technical correction; they agree that it is the result of complex interactions of uncertainty in the global macroeconomic environment.

A securities industry official said, “The sharp drop in the Philadelphia Semiconductor Index, including Nvidia, directly hit Samsung Electronics and SK Hynix, the brain of Korea’s stock market.” The official added, “As China’s AI companies’ frightening pursuit and the resulting ‘AI bubble theory’ resurface, valuation rerating across tech stocks is underway.”

Another expert said, “Fear is dominating the market that the won-to-dollar exchange rate could soar to the mid-to-late 1,500 won range, making it difficult to expect a return of foreign investors from a supply-and-demand standpoint.” They went on to say, “Because it is difficult to turn the index upward using individual investors’ buying pressure alone, it is necessary to put risk management first for now and keep an eye on the market from a conservative perspective.”