South Korean stocks fell over 3% in early trading, dragged down by the decline in Wall Street tech stocks and concerns over a potential Samsung strike.

Odaily Planet Daily News Affected by the decline in major US tech stocks, a higher-than-expected rise in US inflation, and uncertainty over the prospects of US-Iran peace talks, South Korean stocks opened sharply lower on Wednesday, following the overnight decline on Wall Street. After opening 1.7% lower, the South Korean KOSPI index extended its losses to over 3%. The index ended a five-day winning streak on Tuesday, having climbed to near the 8,000-point level during the session, prompting investors to take profits.

The overnight decline in Wall Street tech stocks further dampened investor risk appetite and reignited concerns about the sustainability of massive investments in the artificial intelligence sector.

Investors are also worried about rising US inflation in April, mainly due to the US and Israel's war against Iran pushing up oil prices.

The market is also focused on whether the Samsung Electronics union will push ahead with a full-scale strike, after the union and company management failed to narrow their differences over performance bonus issues during a government-led overnight mediation session. (Jin Shi)