(LEAD) Stocks dip sharply lower as AI leaders call for industry slow down

SEOUL, September 15 (Yonhap) - Tech stocks saw a sharp decline in Seoul on Tuesday as investors reacted to AI leaders urging the industry to slow down. The Korea Composite Stock Price Index (KOSPI) fell 0.52 percent to 6,649.68 by 9:16 a.m. following overnight losses in the U.S., where tech stocks also dropped due to concerns from AI executives about the industry's pace of development and potential risks.

The S&P 500 and Nasdaq both experienced declines of 0.48 percent and 0.56 percent, respectively. Rising U.S. bond yields added to the negative sentiment, with the 10-year Treasury yield reaching 5 percent, a level not seen since October 2023. In Seoul, major companies had mixed fortunes: Samsung Electronics remained unchanged, SK hynix rose slightly, LG Energy Solution fell, Hyundai Motor Motors declined, and KB Financial Group saw a significant drop. The Korean won weakened to 1,347.5 against the U.S. dollar from the previous session's close.