South Korean stock markets moved lower on Monday, with semiconductor stocks falling as second-quarter earnings reports approach, amplifying concerns surrounding artificial intelligence.

The Korea Composite Stock Price Index initially rose as much as 1.7% after the opening bell, but later dropped 50.65 points, or 0.76%, to settle at 6,639.97 points.

Samsung Electronics shares edged down 0.20%, while peer SK Hynix declined 0.97%, giving back earlier gains. Both companies are scheduled to release their second-quarter results later this week.

On Saturday, South Korea announced a new artificial intelligence initiative involving Samsung Electronics, SK Group, and several U.S. technology firms, with a combined value of $950 billion. Global AI leaders are racing to fill a shortage of faster chips needed to power and develop more advanced systems.

E-commerce giant Naver saw its shares surge 8.67% after U.S. chipmaker Nvidia acquired a $1 billion stake in the company as part of an investment collaboration to build new data centers.

Battery manufacturer LG Energy Solution gained 0.30%, while Hyundai Motor and its affiliate Kia fell 0.37% and 1.15%, respectively.

Steelmaker Posco Holdings rose 1.60%, and pharmaceutical company Samsung Biologics added 1.78%.

Of the 915 stocks traded, 504 advanced while 368 declined.

Foreign investors sold a net 1.5 trillion won (approximately $1.02 billion) in equities.