▲ The dealing room at Hana Bank in Seoul on May 28, 2026 (Yonhap)
▲ The dealing room at Hana Bank in Seoul on May 28, 2026 (Yonhap)

(2nd LD) stocks-summary

(2nd LD) KOSPI snaps 4-day winning streak on AI rally pause, renewed Iran tensions

(ATTN: ADDS bond yields at bottom)

SEOUL, May 28 (Yonhap) -- South Korean stocks snapped their four-day winning streak Thursday as artificial intelligence (AI)-related shares took a breather following their recent rally and on renewed tensions between the United States and Iran.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 43.41 points, or 0.53 percent, to close at 8,185.29, after dipping as low as 7,841.01.

Trade volume was heavy at 664.5 million shares worth 52.1 trillion won (US$34.7 billion), with losers outnumbering winners 676 to 213.

Foreigners and institutions unloaded local shares worth 2.9 trillion won and 889.5 billion won, respectively, while retail investors scooped up a net 3.6 trillion won.

The index closed at a record high of 8,288.7 on Wednesday, extending its winning streak to the fourth consecutive session on the back of a strong rally led by major semiconductor shares, including Samsung Electronics and SK hynix. The landmark 8,000-point feat was achieved Tuesday.

The KOSPI, however, lost ground as blue chip shares took a breather after their recent rally on profit taking sentiment and news that the U.S. carried out strikes targeting an Iranian military site, dampening hopes for an imminent peace deal between the two sides.

Following the U.S. attack, Iran also targeted strikes on a U.S. air base, driving up global oil prices.

Overnight, major U.S. indexes edged up to reach record highs, with the Dow Jones Industrial Average rising 0.36 percent, the tech-heavy Nasdaq composite adding 0.07 percent, and the S&P 500 gaining 0.02 percent.

"Hopes for easing geopolitical risks in the Middle East were one of the major forces that drove up the KOSPI recently, but with renewed tensions and a rise in bond yields following the Bank of Korea's (BOK) rate-setting meeting, the index turned sharply lower," Lee Kyoung-min, an analyst at Daishin Securities, said.

Earlier in the day, the BOK kept its benchmark interest rate unchanged at 2.5 percent for the eighth straight time, while raising the possibility of future monetary tightening on inflationary pressures and concerns over currency weakness.

Market top-cap Samsung Electronics dipped 2.44 percent to 299,500 won, while its chipmaking rival SK hynix added 2.05 percent to 2.29 million won.

AI investment firm SK Square slipped 3.06 percent to 1.24 million won, and Hanmi Semiconductor shot down 8.31 percent to 292,500 won.

Major shipbuilders sharply fell, with HD Hyundai Heavy plunging 5.38 percent to 704,000 won and Hanwha Ocean plummeting 7.93 percent to 124,200 won.

Defense giant Hanwha Aerospace retreated 3.54 percent to 1.2 million won, and power plant manufacturer Doosan Enerbility contracted 2.4 percent to 105,900 won. Home appliances maker LG Electronics dropped 4.04 percent to 225,500 won.

Electrical shares also lost ground, with LS Electric down 5.74 percent to 246,500 won and Hyundai Electric shedding 4.3 percent to 1.05 million won.

Samsung Electro-Mechanics, on the other hand, shot up 13.44 percent to 1.85 million won.

Battery shares were also among the few winners.

Leading battery maker LG Energy Solution surged 15.25 percent to 442,000 won on news that it clinched a deal to supply energy storage system batteries to a U.S. firm, and its smaller rival Samsung SDI jumped 7.3 percent to 676,000 won.

Internet portal operator Naver climbed 3.12 percent to 205,000 won.

The Korean won was quoted at 1,502.8 won against the U.S. dollar at 3:30 p.m., down 1.6 won from the previous session.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys added 5.5 basis points to 3.766 percent, while the return on the benchmark five-year government bonds rose 4.2 basis points to 3.992 percent.

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