Korea's $518 bil. chip megaproject sparks Kosdaq rally, fails to lift KOSPI

Seoul stocks ended mixed Monday as foreign selling weighed on the KOSPI, while President Lee Jae Myung's $518 billion semiconductor cluster plan sparked a rally in the Kosdaq. The Korean won weakened to its lowest since March 2009, closing at 1,545.2 per dollar.

Seoul stocks ended mixed Monday as persistent foreign selling kept the benchmark KOSPI in negative territory, while the government's announcement of a large-scale semiconductor investment initiative fueled a broad rally in the Kosdaq and small-cap growth shares. The sustained foreign exodus also weighed on the Korean won. In Seoul's onshore foreign exchange market, the won weakened 13.2 won against the U.S. dollar to close at 1,545.2. The currency finished daytime trading in the mid-1,540 range for the first time since March 9, 2009 in the aftermath of the 2008 global financial crisis. In the afternoon, President Lee Jae Myung unveiled an 800 trillion won $518.1 billion plan to build a sprawling semiconductor cluster in the country's southwestern region as part of the state's flagship push into semiconductors, physical artificial intelligence AI and AI data centers. The announcement briefly lifted sentiment on the main board. The KOSPI, which had remained in negative territory for most of the session after opening 0.91 percent lower at 8,334.28, temporarily turned positive in late-a