Seoul: South Korean shares pared earlier gains late Thursday morning after a strong start, as market heavyweight Samsung Electronics experienced a downturn. The benchmark Korea Composite Stock Price Index (KOSPI) rose by 22.51 points, or 0.56 percent, reaching 4,026.93 at 11:20 a.m. This recovery follows a near 3 percent decline in the previous session due to valuation concerns over artificial intelligence-related stocks.

According to Yonhap News Agency, retail investors and institutions were actively purchasing local shares valued at 750 billion won and 34 billion won, respectively. Foreign investors, however, unloaded a combined total of 786 billion won. In the United States, major indexes closed higher overnight, bouncing back from declines caused by worries about an artificial intelligence bubble. The Dow Jones Industrial Average increased by 0.48 percent, the Nasdaq composite rose by 0.65 percent, and the S and P 500 gained 0.37 percent.

In Seoul, Samsung Electronics, a key market player, fell by 0.7 percent, whereas its competitor in the chipmaking sector, SK hynix, leaped by 2.25 percent. LG Energy Solution, a leading battery manufacturer, surged by 2.91 percent, and defense company Hanwha Aerospace saw an increase of 1.79 percent. The financial sector was robust, with KB Financial climbing by 4.61 percent and Shinhan Financial rising by 4.65 percent.

The electric equipment sector experienced growth as well, with HD Hyundai Electric advancing by 2.07 percent and Korea Electric Power, a state-run company, jumping by 7.01 percent. Conversely, Doosan Enerbility, a power plant builder, dropped by 3.83 percent, and Naver, an internet portal operator, decreased by 4.13 percent.

The local currency was trading at 1,445.3 won against the U.S. dollar as of 11:20 a.m., marking an increase of 4.1 won from the previous session.