Kospi Recovers From 3.4% Drop to Close Down Just 0.2% After Samsung-SK Investment Pledge

Bloomberg reported that South Korean stocks recouped earlier losses as Samsung Electronics and SK Hynix pledged massive investment during a government briefing underscoring the country's commitment to AI development. The Kospi closed down just 0.2%, recovering from a 3.4% drop, following the briefing attended by the two chipmakers' leaders and other industry heavyweights. While Samsung and SK Hynix ended the day lower, gains in energy, construction, and power — essential to supporting the AI capex expansion — held up the benchmark. The small-cap Kosdaq gauge jumped more than 8%. Foreign investors sold a record 7.7 trillion won worth of Kospi shares on Monday, while local funds and retail investors scooped up shares — a dynamic repeated in recent weeks. The initiative, called "Three Mega Projects for the Big Stride Forward" by the presidential office, comes as insatiable demand for memory chips to fuel global AI has placed Samsung and SK Hynix at the center of global tech trade. Share prices for both firms have more than tripled this year at their peaks. "Given the political importance of the project, there's still a chance the government follows up with a broader policy package, and that's likely the next thing investors are watching," said Roy Lim, equity sales trader at NH Investment & Securities in Seoul.