South Korean shares closed lower on Wednesday for a second day, dragged down by sharp declines in semiconductor stocks as higher oil prices and global bond yields took a toll on investor sentiment. Shares of key chipmakers Samsung Electronics (KRX:005930) and SK Hynix (KRX:000660) declined 8% and 10%, respectively, at market close.
The Korea Composite Stock Price Index, or Kospi, decreased by 398.66 points, or 5.8%, to close at 6,471.17. The Kosdaq also fell by 9.74 points, or 1.2%, to close at 824.46.
In economic news, Moody's has revised up its economic growth forecast for South Korea to 3.5%, driven by a boost in semiconductor activity until at least mid-2027.
The rating agency expects GDP growth of 2.7% for the country in 2027.
The forecast for this year is higher than the previous estimates of 2.5% in May and 1.8% in February.
In corporate news, Hyundai Motor's (KRX:005380) 40,000-member labor union plans to carry out a partial strike throughout this week after failing to reach a wage agreement with the automaker's management, Yonhap News reported Tuesday.
The union scheduled four-hour partial strikes on Monday and Tuesday, with plans to continue next week, according to the report.
The union is seeking a 149,600-won increase in monthly base pay and a performance bonus equivalent to 30% of the net profit in 2025. The automaker has offered an 80,000-won monthly base-pay raise, a performance bonus equivalent to 350% of monthly salary plus 10 million won, along with 15 company shares, the report said.
Hyundai Motor did not immediately respond to' request for comment.
Shares of the automaker fell 5% at market close.