Seoul:South Korean shares closed slightly higher on Friday after a significant drop of more than 3 percent in the previous session. The recovery was driven by investors seeking bargains in major chip stocks, despite ongoing concerns about investments in the artificial intelligence (AI) value chain. Additionally, the Korean won strengthened against the U.S. dollar.

According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) experienced a volatile trading session but managed to rise by 16.53 points, or 0.3 percent, to close at 5,550.30. Initially, the index opened 2.36 percent lower. However, individual investors, who began as net sellers, shifted to net buying later in the session.

The previous night, U.S. stocks showed mixed results, with declines in major technology shares affecting the broader market. The Dow Jones Industrial Average saw a slight increase of 0.02 percent, while the S&P 500 and the tech-heavy Nasdaq Composite fell by 1.21 percent and 2.6 percent, respectively. Notably, Micron Technology experienced a significant drop of 6.26 percent, and Nvidia and Intel saw declines of 4.4 percent and 8.04 percent, respectively.

In Seoul, trading among large-cap shares was mixed. Samsung Electronics, a key market player, edged up by 0.47 percent to close at 215,500 won. SK hynix, another prominent chipmaker, increased by 4.42 percent to 1.28 million won after initially opening lower. The exchange rate for the Korean won was quoted at 1,324.6 won against the U.S. dollar at 330 p.m., marking a rise of 0.4 won from the previous stock trading session's close.