South Korea's KOSPI fell more than 1 percent to below 6,800 on foreign net selling worth about 1.7 trillion won and weakness in large-cap semiconductor shares. The benchmark, which had climbed to just below 7,000 a day earlier, ended a three-session rise and came under renewed correction.

On Aug. 28, the KOSPI closed down 123.49 points, or 1.79 percent, at 6,788.88. The index opened down 65.83 points, or 0.95 percent, at 6,846.54. It rose as high as the 6,900 level during the session to narrow losses, but slid again in the afternoon to as low as the 6,700 level.

In the main board market, foreign investors led the decline by net selling 1.76 trillion won. Institutions also net sold 284.4 billion won. Retail investors net bought 424.5 billion won, taking in selling.

Top semiconductor stocks by market capitalisation all weakened. Samsung Electronics closed down 3.38 percent at 257,000 won and SK Hynix fell 4.45 percent to finish at 1,653,000 won.

Elsewhere, SK Square fell 3.75 percent and Samsung Biologics slid 6.78 percent. LG Energy Solution and Samsung C&T also fell 0.13 percent each.

In contrast, Samsung Electro-Mechanics rose 2.60 percent to 1,421,000 won and KB Financial Group gained 2.08 percent to 171,600 won. Samsung Life Insurance and Hyundai Motor also rose 0.98 percent and 0.38 percent, respectively.

The Kosdaq closed slightly higher, unlike the KOSPI. The Kosdaq rose 0.76 point, or 0.09 percent, to 838.41.

In the Seoul foreign exchange market, the won rose 8.70 to 1,373.30 per dollar from the previous session.

The KOSPI has recently been in a tug of war around the 7,000 level. A day earlier, it rose as high as 6,996.12 during the session in an attempt to break 7,000, but closed at 6,912.37, and then fell back below 6,800 on the day.

Han Ji-young (한지영), a researcher at Kiwoom Securities, analysed that whether the KOSPI breaks above 7,000 and settles there, which it attempted several times in August, would be important for the market's next direction.

On earnings, some analysis says there is still upside room. As of Aug. 27, the KOSPI's 2026 operating profit forecast stood at 989.7 trillion won, up from 974.9 trillion won at the end of last month, and the 2027 forecast was also revised up to 1,314.3 trillion won from 1,310.9 trillion won over the same period.

The researcher analysed that "other overall conditions are also improving, including valuation-based incentives to enter and a decline in volatility levels" and that "if it breaks above 7,000 and settles there, it could add weight to the possibility that the mid-term recovery trend is extended".