South Korea's benchmark KOSPI dropped 1.55% to 6,870 on Tuesday, ending a five-day rally as investors locked in gains after a sharp semiconductor-led advance. The pullback came as hopes for a US-Iran deal faded, lifting oil prices and reviving inflation concerns, while elevated Treasury yields weighed on broader risk appetite. Foreign investors remained net buyers of Korean equities, but retail investors and institutions sold, indicating the move was driven more by profit-taking than a broad exit from Korean assets. Samsung Electronics fell 2.00%, with other major decliners including SK Square, Hyundai Motor, LG Energy Solution, Hanwha Aerospace, Kia Corporation, HD Hyundai Heavy Industries and Doosan Enerbility. Uncertainty around ongoing US-Korea trade negotiations tied to a planned US$200 billion investment commitment also continued to cloud the outlook for Korean exporters.