Kospi Drops 4 Percent as Samsung and SK Hynix Shares Slide

South Korea's benchmark Kospi plunged 4.03 percent early Tuesday as technology shares tumbled amid investor concerns over U.S. market losses, upcoming corporate earnings and inflation data. Samsung Electronics and SK hynix led the sell-off, weighing on the broader market ahead of the next U.S. consumer price index report.

According to market data cited by Korea JoongAng Daily, the Kospi opened 3.1 percent lower before extending its decline to 257.59 points, reaching 6,126.65 as of 9:15 a.m. The sharp drop followed a mixed session on Wall Street, where technology stocks faced renewed selling pressure.

Overnight, the Dow Jones Industrial Average gained 0.38 percent, while the Nasdaq Composite, which is heavily weighted toward technology companies, fell 0.44 percent. The contrasting performance reflected continued weakness in the technology sector ahead of major corporate earnings announcements.

Investors are also monitoring the U.S. consumer price index report scheduled for Wednesday. According to the source report, the figures could provide additional insight into the Federal Reserve's policy outlook before its October interest rate-setting meeting.

Technology companies accounted for some of the steepest losses in Seoul. Samsung Electronics, South Korea's market heavyweight, declined 4.79 percent, while semiconductor rival SK hynix dropped 5.61 percent. Their losses contributed to the broader market's sharp early-session retreat.

Other major South Korean companies also traded lower. Defense manufacturer Hanwha Aerospace fell 3.71 percent, while Hyundai Motor, the country's leading automaker, lost 5 percent, according to the market figures reported by Korea JoongAng Daily.

Entertainment stocks moved in the opposite direction. Hybe, the agency behind K-pop group BTS, rose 1.47 percent, while rival entertainment company SM gained 1.8 percent. Their advances contrasted with the widespread weakness among major stocks.

In the foreign exchange market, the South Korean won weakened by 0.1 won from the previous session, trading at 1,335.70 won per U.S. dollar. The currency movement accompanied the sharp decline in domestic equities as investors assessed developments in global markets and awaited U.S. inflation figures.