[COVER STORY] Black Thursday: KOSPI plunges 7% amid AI spending fears

Black Thursday struck the Korean market as the KOSPI index plummeted 7.57% and lost nearly 400 trillion won ($297.7 billion) in market value. The sharp decline stemmed from worries about the viability of artificial intelligence (AI) spending and the future of the semiconductor industry. By the close of trading, the KOSPI index had fallen to 5,554.22, marking a 7.57% drop.

Triggered at 9:07 a.m., a sell-side sidecar signaled one of 27 such activations this year. Subsequently, a Level 1 circuit breaker was activated at 12:38 p.m. A sell-side sidecar is set off when the most actively traded KOSPI 200 future falls by at least 5% from the prior session for one minute. A Level 1 circuit breaker comes into play when the benchmark index drops by at least 8% from the previous close for a minute.

Foreign investors unloaded 3.6 trillion won worth of shares, marking their eighth consecutive day of net selling. Amid the turmoil, institutional and retail investors stepped in to buy shares at discounted prices. Samsung Electronics, a heavyweight on the market, witnessed a 9.48% decline, closing the session at a lower valuation.