South Korea's KOSPI is down more than 3 percent in early trade after Samsung Electronics released preliminary second-quarter results. Semiconductor heavyweights including Samsung Electronics and SK Hynix are falling together, dragging the index lower.

As of 9:16 a.m. on Tuesday, the KOSPI was trading at 7,752.91, down 298.42 points, or 3.71 percent, from the previous session. The index opened at 7,919.20, down 132.13 points, or 1.64 percent, from the previous close.

In the main board market, individuals are net buyers of 317.7 billion won. Foreigners and institutions are net sellers of 266.3 billion won and 48.5 billion won, respectively.

Most top market-cap stocks are weaker. Samsung Electronics was trading at 300,000 won, down 18,000 won, or 5.66 percent, from the previous session. SK Hynix was down 72,000 won, or 3.07 percent, at 2,271,000 won.

Others falling include SK Square, down 4.88 percent, Samsung Electro-Mechanics, down 1.15 percent, Hyundai Motor, down 4.88 percent, LG Energy Solution, down 3.53 percent, Samsung Life, down 4.45 percent, Samsung C&T, down 4.00 percent, and Samsung Biologics, down 0.71 percent.

The Kosdaq was rising. At the same time, the Kosdaq was up 7.80 points, or 0.92 percent, at 854.87.

The won-dollar exchange rate early in the session was 1,530.10 won, down 0.40 won, or 0.03 percent, from the previous session.

In the securities industry, shifts in supply and demand for semiconductor stocks after Samsung Electronics' preliminary second-quarter results are seen as a key variable that will determine the market's direction on the day.

With the share of trading in single-stock leveraged exchange-traded funds having risen recently, there is analysis that moves in semiconductor heavyweights could increase index volatility.

Han Ji-young (한지영), a researcher at Kiwoom Securities, said Samsung Electronics' preliminary second-quarter results would be the first turning point. She said the short-term focus would be whether follow-on buying emerges after the earnings release as sell-on volumes come out and as the market overcomes noise about industry conditions.