South Korean stocks recovered much of their earlier losses after Samsung Electronics (SSNLF) and SK Hynix (HXSCL) unveiled major investment plans tied to the country's AI push. The Kospi finished down just 0.2%, after falling as much as 3.4%, as investors weighed the impact of massive chip spending against the broader opportunity in AI infrastructure. Samsung Electronics and SK Hynix still ended lower, but strength in energy, construction, power and AI-linked shares helped support the wider market, while the small-cap Kosdaq jumped more than 8%.
Samsung Group and SK Group are planning to build two chipmaking plants each, with total investment reaching 800 trillion won, or about $518 billion, according to South Korea's industry minister. The country is also aiming to double DRAM production capacity over the next five years, a move that could further cement Korea's position in the global AI supply chain. While investors may remain cautious about how this capex cycle affects chipmaker profits, the government's commitment to AI infrastructure was viewed as a possible positive for the broader industrial base.
Foreign investors sold a record 7.7 trillion won worth of Kospi shares on Monday, even as local funds and retail investors stepped in to buy. The initiative, called Three Mega Projects for the Big Stride Forward, comes as demand for memory chips continues to rise alongside global AI investment. With Samsung and SK Hynix shares having more than tripled at their peaks this year, investors may now be watching whether the government follows with a broader policy package to support Korea's next stage of AI buildout.