(2nd LD) Seoul shares sink over 5 pct on tech losses amid Iran uncertainty; won sharply down

SEOUL, June 5 (Yonhap) -- South Korean stocks dipped by more than 5 percent as investors locked in profits from a recent tech-led rally while monitoring uncertainty over U.S.-Iran peace negotiations. The local currency weakened sharply against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) lost 478.82 points, or 5.54 percent, to close at 8,160.59, retreating for a second consecutive session.

After opening 3.44 percent lower, the Korea Exchange suspended program trading for the KOSPI for five minutes at 9:08 a.m., triggering a sidecar after the KOSPI 200 Futures index fell 5 percent or more for at least one minute.

Trade volume was moderate at 446.37 million shares worth 45.73 trillion won (US$29.71 billion), with losers outnumbering winners 671 to 224.

Foreign and institutional investors sold a net 3.5 trillion won and 942.4 billion won, respectively, while individuals bought a net 4.22 trillion won.

The benchmark Korea Composite Stock Price Index is displayed on a screen at Hana Bank's dealing room in Seoul on June 5, 2026. (Yonhap)

The Dow Jones Industrial Average rose 1.73 percent, and the S&P 500 added 0.41 percent to 7,584.31. The tech-heavy Nasdaq composite slipped 0.09 percent as declines in stocks related to artificial intelligence (AI) weighed on the index.

Broadcom tumbled more than 12 percent after the U.S. chipmaker's quarterly results, and outlook for AI-related revenue fell short of investors' lofty expectations.

Oil prices retreated after three consecutive sessions of gains as investor sentiment improved following reports that Israel had agreed to a conditional ceasefire with Lebanon.

In Seoul, most large-cap stocks ended lower as foreign investors extended their selling streak to a 20th consecutive session.

"Technology heavyweights tracked declines in U.S. semiconductor stocks after Broadcom tumbled more than 10 percent on weaker-than-expected results and guidance, while foreign investors continued to sell Korean equities following this year's strong rally," Han Ji-young, an analyst at Kiwoom Securities, said.

"Some investors also appear to be raising cash ahead of several major events scheduled for next week, including SpaceX's anticipated listing on the Nasdaq market," he added.

A dealing room at Hana Bank in Seoul on June 5, 2026 (Yonhap)

Top market-cap Samsung Electronics sank 6.4 percent to 329,000 won, and its rival chipmaker SK hynix plunged 9.92 percent to 2,070,000 won.

AI investment firm SK Square dipped 7.57 percent to 1,258,000 won, and top automaker Hyundai Motor was steady at 700,000 w