Seoul: South Korean shares closed lower for the second consecutive session Friday as investors sought to lock in profits amid concerns over the long-term profitability of artificial intelligence (AI) companies. The local currency fell against the U.S. dollar.

According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) slid 74.43 points, or 1.44 percent, to close at 5,089.14. Trade volume was heavy at 738.6 million shares worth 29.4 trillion won (US$20 billion), with losers far outnumbering gainers 702 to 189.

Foreign investors offloaded a net 3.3 trillion won, while retail investors bought a net 2.1 trillion won. Institutions purchased a net 960 billion won. Analysts noted that Seoul shares lost ground as investors sought to cash in profits from a recent record-breaking rally, particularly in the technology segment, amid renewed concerns over the profitability of AI-related companies.

"Growing concerns over the profitability of Microsoft, Google, and Amazon, along with their expanding investment in the AI sector, have led to aggressive selling of technology shares in general," said Lee Kyoung-min, a researcher at Daishin Securities. Lee further noted that investors are selling assets amid volatility in other investments, such as silver and cryptocurrencies.

Seoul's tech giant Samsung Electronics fell 0.44 percent to 158,600 won, while its local chipmaking rival SK hynix slipped 0.36 percent to 839,000 won. Battery firms also closed lower, with industry leader LG Energy Solution moving down 2.53 percent to 385,000 won, and Samsung SDI falling 4.02 percent to 370,000 won.

Top automaker Hyundai Motor tumbled 4.3 percent to 467,500 won, while its sister company Kia dipped 2.75 percent to 151,900 won. Netmarble, a major game developer, shot up 7.68 percent to 54,700 won, one day after the company reported record-breaking sales for the fourth quarter of 2025.

The local currency was quoted at 1,469.5 won against the U.S. dollar at 3:30 p.m., down 0.5 won from the previous session. Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys moved up 2.9 basis points to 3.233 percent, and the return on the benchmark five-year government bonds gained 1.6 basis points to 3.521 percent.