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South Korean Shares Plunge 5% on Tech Losses; Samsung Loses 6%, SK Hynix 10%

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South Korean shares plunged nearly 5% at market close on Thursday as losses incurred by technology stocks weighed on sentiment. Investors were particularly skeptical about the AI industry.

Shares of key market movers Samsung Electronics (KRX:005930) and SK Hynix (KRX:000660) declined over 6% and 10%, respectively, taking a toll on the primary index.

The Korea Composite Stock Price Index, or Kospi, decreased by 301.88 points, or 4.6%, to close at 6,296.38. The Kosdaq rose by 2.08 points, or 0.3%, to close at 801.67.

In economic news, South Korea's current account surplus stood at $49.73 billion in June, up from $38.6 billion in May, according to preliminary data from the Bank of Korea on Thursday.

The figure surpassed Trading Economics' forecast of $34.7 billion and marked the largest surplus on record.

Goods account surplus jumped to $47.9 billion from $37.9 billion as exports surged 84.5% to $112.4 billion, while the services account logged a larger deficit of $1.29 billion as compared to $1.09 billion in May.

In corporate news, LIG Defense & Aerospace (KRX:079550) posted a second-quarter net income attributable to shareholders of the parent of 82.6 billion won, down 23% from 107.1 billion won a year earlier.

Sales, on the other hand, increased 17% to 1.11 trillion won from 945.4 billion won, according to a Thursday filing with the Korea Exchange.

Shares of the company declined 12% at market close.

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