Seoul stocks sharply down late Mon. morning amid Mideast uncertainties, AI warning

Seoul stocks plummeted in late morning trading on Monday, as geopolitical uncertainties in the Middle East and concerns over artificial intelligence contributed to a gloomy investment climate. The Korea Composite Stock Price Index (KOSPI), which opened over 3 percent lower, fell sharply 151.27 points, or 2.19 percent, to 6,758.64 by 11:27 a.m. As anticipated, the scheduled Iran-Gulf talks on navigation in the Strait of Hormuz were postponed, further discouraging investors who were already on the sidelines.

Additionally, warnings from key AI firms regarding the rapid pace of technological development proved to be a deterrent for market participants. Among the affected companies, Samsung Electronics and SK hynix experienced significant losses, with the former dropping 2.31 percent and the latter falling 4.3 percent. Battery manufacturer LG Energy Solution and car manufacturer Hyundai Motor also saw declines of 1.11 percent and 3.01 percent, respectively.

Defense contractor Hanwha Aerospace, on the other hand, saw a modest gain of 4.07 percent. The Korean won was trading at 1,344.3 won per U.S. dollar, up slightly from the previous session's close.