The benchmark KOSPI held flat to close at 3,198 on Wednesday, pausing a two-day rally as tourism and retail gains offset losses in chip and pharma stocks. Samsung Electronics fell 1.57% and SK Hynix dropped 1.90%, while Samsung Biologics declined 1.90% and SK Biopharmaceuticals sank 8.89%. Meanwhile, tourism and retail shares advanced following the government's announcement to start a visa waiver for Chinese group tourists starting next month. Energy shares were also among the winners, with Doosan Enerbility gaining 2.31% and Korea Electric Power jumping 7.44%. Foreigners and institutions sold a net KRW 67.5 billion and KRW 53.7 billion worth of local shares, respectively, while retail investors purchased a net 46.9 billion won. Externally, US policy uncertainty lingered after President Trump said he would decide on a Fed board nominee by week’s end. Markets eyed stagnant US services data and rising input costs reflecting the impact of Trump's aggressive tariffs on businesses.