KOSPI Closes at 2630 Level Amid Foreign and Institutional Selling

Technology Stocks Fall Amid AI Oversupply Concerns
Shipbuilding Stocks Rebound on Potential US Sanctions Against Chinese Vessels

The domestic stock market, which had continued its strong momentum last week, retreated to the 2630 level due to simultaneous selling by foreigners and institutions. While technology stocks fell amid concerns of AI oversupply led by Microsoft (MS), shipbuilding stocks rose collectively on the possibility of U.S. sanctions on Chinese vessels.

On the 25th, the KOSPI closed at 2630.29, down 14.98 points (-0.57%) from the previous trading day. Foreigners and institutions led the index decline with net sales of 322 billion KRW and 97.6 billion KRW, respectively. Individuals were net buyers with 318.1 billion KRW.

On the 20th, the KOSPI index, which had been rising consecutively, started lower, and the KOSPI index and KRW/USD exchange rate were displayed on the status board in the Hana Bank dealing room in Jung-gu, Seoul. On that day, the KOSPI opened at 2661.72, down 0.37% from the previous session, and the KRW/USD exchange rate in the Seoul foreign exchange market started strong, rising more than 2 won. 2025.2.20 Photo by Jo Yongjun

Among the top market cap stocks, Samsung Electronics (-0.17%), SK Hynix (-2.20%), and LG Energy Solution (-3.11%) declined. Samsung Biologics (2.35%) and Naver (0.22%) rose.

On this day, technology stocks including AI and semiconductors fell one after another. The previous night on Wall Street, a report emerged that MS had begun reducing data center leases, sparking concerns over AI oversupply and causing related stocks to drop.

In contrast, shipbuilding stocks rose collectively. HD Hyundai Heavy Industries (5.67%), Samsung Heavy Industries (8.20%), and HD Hyundai Heavy Industries Holdings (3.18%) increased.

This was influenced by news that the U.S. Trade Representative (USTR) is considering imposing fees when Chinese shipping companies’ vessels or Chinese-made ships enter U.S. ports, attracting investor attention. This regulation will be finalized after a public hearing scheduled for March 24.

If fees are imposed on Chinese-made ships, China’s core competitive advantage of low prices could disappear. Chinese shipbuilders are currently winning orders at prices about 20% cheaper than Korean shipyards.

The domestic shipbuilding industry welcomes the U.S.’s strengthened regulations against China, expecting that shipping companies seeking to avoid regulatory risks will turn to Korean shipyards.

Jung Dong-ho, a researcher at Mirae Asset Securities, said, "Going forward, global shipping companies’ preference for Chinese shipbuilders will decline, creating opportunities for Korean and Japanese shipbuilders."

The KOSDAQ closed at 769.43, down 3.90 points (-0.5%) from the previous trading day.

Among the top market cap stocks, Alteogen (2.74%), Samchundang Pharmaceutical (5.35%), and Ligand Chem Bio (0.98%) rose. Meanwhile, EcoPro BM (-5.47%), HLB (-0.34%), and EcoPro (-4.66%) declined.

This content was produced with the assistance of AI translation services.