Seoul: The boom of tech and semiconductor shares, a major factor in the advancement of the South Korean stock market this year, could take a breather throughout the rest of October from profit-taking, analysts predicted Thursday. The benchmark Korea Composite Stock Price Index (KOSPI) rose 9 percent from Sept. 1 to Sept. 30, according to data from Yonhap Infomax, the financial news and information arm of Yonhap News Agency.

According to Yonhap News Agency, semiconductors led the overall gains, with market top-cap Samsung Electronics advancing 24.1 percent and its rival SK hynix jumping 35.7 percent over the cited period. IT shares, such as LG Display and Samsung Electro-Mechanics, also chalked up strong gains, rising 23.6 percent and 19.3 percent, respectively, over the period.

Some analysts, however, predicted the bullish run in tech and chip stocks could slow down this month due to profit-taking and tariff woes. “Investors could move to profit-taking in October as the prices of tech stocks rose much higher than market expectations. There are also not many new IT devices scheduled for release in October, limiting further momentum,” said Park Kang-ho, an analyst from Daishin Securities.

Uncertainties stemming from Washington’s planned tariffs on semiconductors are also variables, said Song Myung-sup, an analyst at iM Securities. The exact timing of the tariff’s application remains uncertain. Seoul and Washington are also reportedly at odds over the details of Korea’s US$350 billion investment pledge made under a trade agreement in July.

“Currently, semiconductor shares could be affected by a demand to secure chips in advance as there are no duties levied on South Korean chips for now,” said Song Myung-sub, an analyst from iM Securities. “Should that be the case, we could see a slump in demand once semiconductor tariffs take effect.”