Seoul stocks dip over 3 pct on Mideast uncertainties, AI warnings

Seoul stocks experienced a significant decline of over 3 percent on Monday, driven by tech sector sell-offs and concerns over geopolitical instability and the rapid advancement of artificial intelligence (AI), according to Yonhap News Agency. The Korean won weakened against the U.S. dollar. The Korea Composite Stock Price Index (KOSPI) opened sharply lower but closed down 225.54 points, or 3.26 percent, at 6,684.37.

Analyst Lee Kyoung-min from Daishin Securities attributed the steep drop to the controversy surrounding the pace of AI development. A scheduled meeting aimed at reopening transit in the Hormuz Strait was delayed, causing Brent crude oil to surpass $108 per barrel, further dampening investor confidence. Earlier in the weekend, Anthropic's co-founder, Dario Amodei, called for a slowdown in AI technology to ensure public safety, following a rare consensus among U.S. AI executives.