South Korean shares closed lower for a fourth straight session on Tuesday as investors remained cautious over macroeconomic uncertainty and concerns over calls by AI industry leaders to slow development in the industry. Investors now look forward to the U.S. Federal Reserve's Sept. 15-16 policy meeting.
The Korea Composite Stock Price Index, or Kospi, decreased by 57.11 points, or about 0.9%, to close at 6,627.26. The Kosdaq rose by 5.62 points, or 0.7%, to close at 812.41.
Oil prices remained elevated after Oman postponed a meeting with Iran and other regional countries on future control of the Strait of Hormuz. Brent crude settled at $105.68 a barrel Monday, while U.S. crude traded around $101, more than 20% above levels a month earlier. Fighting in Yemen also intensified, raising concerns over disruptions to Saudi oil exports through the Red Sea.
In economic news, South Korean insurance companies saw a decline in automobile insurance profit in the first half of 2026, preliminary data from the Financial Supervisory Service showed Tuesday.
The combined profit of insurers offering automobile insurance fell 37.7% to 238 billion won in the January-June period from 382 billion won a year earlier, the data showed.
Automobile insurance premiums totaled 10.64 trillion won, up 4.2% from 10.21 trillion won in the same period a year earlier.
In corporate news, Hyosung Heavy Industries (KRX:298040) secured two transformer purchase agreements from HICO America Sales & Tech, one for a 345kV transformer and another for a 765kV transformer, according to two separate filings with the Korea Exchange on Tuesday.
The order for the 345kV transformer is valued at 166.52 billion won, to be delivered by August 2028 and the order for the 765kV transformer is valued at 220.07 billion won and will be delivered by February 2029, the filing said.
Shares of Hyosung Heavy Industries fell over 4% at market close.