Seoul: South Korean stocks opened sharply lower Tuesday, dragged down by losses in tech shares following a selloff in chipmakers on Wall Street. After opening 5.26 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) extended losses, falling 432.95 points, or 6.41 percent, to 6,322.80 as of 9:15 a.m.

According to Yonhap News Agency, the Korea Exchange, the country's bourse operator, activated a sell-side sidecar for the KOSPI for 20 minutes at 9:06 a.m. after the benchmark index fell more than 5 percent. Overnight Wall Street finished mixed, with the Nasdaq declining 0.18 percent and the Dow Jones Industrial Average rising 0.51 percent. Semiconductor shares were weak as investors remained skeptical about tech giants' heavy spending on artificial intelligence (AI), with the PHLX chip index, a gauge of U.S. semiconductor giants, extending its recent selloff by falling 2.2 percent.

Meanwhile, U.S. President Donald Trump mentioned that Washington and Tehran were having "good talks," indicating a chance of a deal over the ongoing conflict, but warned that fighting would resume if the negotiations fail. In Seoul, semiconductor shares contributed to the sluggish opening, with market bellwether Samsung Electronics slumping 7.68 percent and its chipmaking rival SK hynix plunging 9.36 percent. Hanmi Semiconductor, a leading chip equipment manufacturer, sank 8.26 percent, and SK Square, the parent of SK hynix, tumbled 9.58 percent.

Top carmaker Hyundai Motor dived 5.33 percent, and leading battery maker LG Energy Solution dropped 3 percent. The Korean won was trading at 1,470.25 won against the U.S. dollar as of 9:15 a.m., down 4.25 won from the close of stock trading the day before.