▲ A dealing room at Hana Bank in Seoul on June 8, 2026 (Yonhap)
▲ A dealing room at Hana Bank in Seoul on June 8, 2026 (Yonhap)

(2nd LD) stocks-open

(2nd LD) Seoul shares open over 8 pct lower on inflation, tech slump woes; trading halted for 20 minutes

(ATTN: ADDS more info in headline, last 4 paras, photo)

SEOUL, June 8 (Yonhap) -- South Korean stocks nosedived more than 8 percent shortly after opening Monday, triggering a 20-minute trading halt, as investors dumped tech and other market heavyweights amid woes over rising inflation, which could prod a rate hike. The local currency was trading sharply lower against the U.S. dollar after opening at a 17-year low.

After falling nearly 9 percent, the benchmark Korea Composite Stock Price Index (KOSPI) had plunged 683.13 points, or 8.37 percent, to 7,477.46 as of 9:30 a.m.

With the sharp fall, the Korea Exchange activated a circuit breaker for the KOSPI about three minutes after opening, halting trading for 20 minutes, and a sell-side sidecar for the secondary KOSDAQ market about six minutes after opening, suspending trading for five minutes.

The weak start came as major U.S. indexes suffered sharp losses last week, fueled by semiconductor shares' biggest daily percentage drop since March 2020 and the hotter-than-expected U.S. jobs report for May, which fueled fears of a hawkish policy pivot by the U.S. Federal Reserve.

The Dow Jones Industrial Average closed 1.35 percent lower on Friday (local time), while the S&P 500 dipped 2.64 percent and the tech-heavy Nasdaq composite slid 4.18 percent.

Major U.S. chip shares sharply lost ground, with Nvidia slumping 6.2 percent, Broadcom contracting 7.92 percent and Micron shooting down 13.25 percent.

In Seoul, market top-cap Samsung Electronics plummeted 8.51 percent, while its chipmaking rival SK hynix slid 7.29 percent.

Artificial intelligence (AI) investment firm SK Square plunged 9.78 percent, and home appliances maker LG Electronics nosedived 12.54 percent.

Top automaker Hyundai Motor pulled back 9.71 percent, and SK Group lost 10.72 percent.

Leading battery firm LG Energy Solution went down 3.62 percent, while its smaller rival Samsung SDI dropped 10.21 percent.

Samsung Electro-Mechanics declined 8.37 percent, Samsung Life Insurance dipped 12 percent, and power plant manufacturer Doosan Enerbility lost 8.37 percent.

Foreign investors were unloading 342 billion won worth of local shares, while retail investors and institutions were scooping up 207 billion won and 142 billion won, respectively.

"There is a lot at stake in this week's financial market, with U.S. inflation data, treasury yields and the ongoing debate over the sustainability of AI-related investment all unfolding simultaneously," Seo Sang-young, an analyst at Mirae Asset Securities, said.

Han Ji-young, a researcher at Kiwoom Securities, also anticipated a "challenging" week for the KOSPI, noting that the release of the U.S. Consumer Price Index for May, the SpaceX listing and Oracle's earnings results planned for this week may weigh on the market.

The Korean won was trading at 1,554.6 won against the U.S. dollar at 9:30 a.m., sliding 15.5 won from the previous session, after opening at 1,555.2 won, the lowest mark since March 6, 2009, when the global markets were in a financial crisis.

(END)

[ⓒ K-VIBE. 무단전재-재배포 금지]