The KOSPI index is showing a slight decline in early trading on September 29. The rise in U.S. long-term government bond rates and weakness in semiconductor stocks are weighing on the market, although buying interest following a sharp drop the previous day is helping to limit losses.
According to the Korea Exchange, as of 9:12 a.m., the KOSPI was down 10.36 points (0.15%) at 6,879.38. The index fell to as low as 6,834.82 in early trading before recovering some of its losses.
In the stock market, foreign investors are net sellers, offloading 324.3 billion won. Meanwhile, institutions and individuals are net buyers, purchasing 128.4 billion won and 159.6 billion won, respectively.
Among the top market capitalization stocks, the performance is mixed. Samsung Electronics is trading up 0.19% at 270,500 won, while SK Hynix remains flat. Samsung Electro-Mechanics is up 2.33%. Conversely, LG Energy Solution (-2.75%), Samsung Life Insurance (-2.53%), Samsung Biologics (-1.79%), and Hyundai Motor (-1.55%) are all experiencing declines.
At the same time, the KOSDAQ index has fallen 4.35 points (0.51%) to 842.23. Foreign and institutional investors are net sellers, offloading 36.8 billion won and 54 billion won, while individuals are net buyers, purchasing 103.2 billion won.
Among the top KOSDAQ stocks, HLB is surging 9.26%. Other gainers include IOTechniques (2.77%), Rino Technology (2.11%), Juseong Engineering (1.67%), Simtech (1.36%), and Wonik IPS (1.14%). In contrast, EcoPro BM (-3.41%), EcoPro (-2.56%), and Alteogen (-2.38%) are showing weakness.
Overnight, U.S. stocks fell amid rising tensions between the U.S. and Iran and concerns over long-term interest rates. The Dow Jones Industrial Average dropped 0.67%, the S&P 500 fell 0.77%, and the Nasdaq Composite declined 0.92%. The yield on the 10-year U.S. Treasury note rose to 5.24%, dampening investor sentiment, particularly in technology stocks.
Han Ji-young, a researcher at Kiwoom Securities, stated, "Today, the domestic market is expected to open lower due to the surge in U.S. 10-year bond yields, weakness in semiconductor stocks driven by OpenAI, and the dividend ex-date for Samsung Electronics. However, the negative impact from OpenAI has likely been priced in already, and we may see a recovery in losses during the day due to perceived excessive declines and buying interest."
She added, "Despite the KOSPI's sharp drop of over 2% the previous day, the number of gaining stocks significantly outnumbered those that fell. Of the 3.26 trillion won in net selling by foreign investors, 99% was concentrated in semiconductors. This suggests a selective reduction in semiconductor exposure rather than a broad reduction in the Korean market, influenced by profit-taking ahead of Samsung Electronics' dividend ex-date and rising U.S. long-term rates, along with the halt in OpenAI's training."
Han concluded, "While the impact of Samsung Electronics' dividend ex-date and macro volatility may arise, we believe the market will not deviate from the existing path of 'high interest rate resilience + recovery of AI stock leadership → leveling up market lows.' With major events such as Micron's earnings, U.S. September employment data, and South Korea's September exports on the horizon, the effectiveness of a strategy responding to volatility with stock sales is likely to be low."
* This article has been translated by AI.
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