The benchmark KOSPI edged lower to around 8,380 on Tuesday, extending losses for a third straight session, amid continued profit-taking following the recent AI-driven rally and record foreign selling.
Foreign investors dumped a record KRW 7.7 trillion worth of local equities in the previous session, adding pressure despite strong domestic buying.
Sentiment was also weighed by weak domestic data, with South Korea's industrial production falling 0.3% in May and semiconductor output declining 10% due to shipment adjustments and base effects.
Decliners included SK Square (-4.0%), LG Energy Solution (-7.9%), Hanwha Aerospace (-4.0%), and SK Hynix (-2.1%).
Meanwhile, optimism over the government's KRW 800 trillion semiconductor investment plan, alongside improved global risk appetite following easing Middle East tensions and overnight gains on Wall Street, helped cushion the decline.
For June, the KOSPI was down more than 1%.