South Korean shares post more than 6-month closing low as chipmakers fall on AI concerns

SEOUL, - Round-up of South Korean financial markets:

** South Korean shares fell more than 3% on Tuesday to post their lowest close in more than 6 months, as chipmakers dropped on concerns over the global AI investment boom.

** The benchmark KOSPI ended down 215.27 points, or 3.73%, at 5,552.74, after rebounding for two consecutive sessions, and marked its lowest closing level since April 7.


** "The sustainability of the recent rebound was limited as credit and profitability concerns around AI investment remained not fully resolved," said Lee Kyoung-min, an analyst at Daishin Securities.

** The Bank of Korea will keep its key policy rate unchanged on Thursday after two consecutive increases but is expected to raise borrowing costs once more next month, a Reuters poll of economists found, as inflation remains above target and growth remains firm.

** Chipmaker Samsung Electronics fell 2.98%, while peer SK Hynix lost 4.23%.

** Among other index heavyweights, battery maker LG Energy Solution slid 4.17%, while Hyundai Motor and sister automaker Kia Corp were down 4.91% and 3.10%, respectively.

** Steelmaker POSCO Holdings shed 3.97%, while drugmaker Samsung BioLogics fell 2.52%.

** AI infrastructure firm Elice Group plunged more than 30% in its market debut.

** Of the total 915 traded issues, 118 shares advanced, while 773 declined.

** Foreigners were net sellers of shares worth 530.0 billion won ($399.58 million).

** The won was quoted at 1,328.1 per dollar on the onshore settlement platform, 0.38% higher than its previous close at 1,333.1.

** In money and debt markets, December futures on three-year treasury bonds gained 0.09 point to 103.01.

** The most liquid three-year Korean treasury bond yield fell by 2.8 basis points to 3.852%, while the benchmark 10-year yield rose by 3.4 basis points to 4.188%.

($1 = 1,326.4000 won)

(Reporting by Jihoon Lee; Editing by Subhranshu Sahu)