(LEAD) Seoul shares open sharply lower after rebound amid AI concerns

Seoul's stock market opened significantly lower on Tuesday, as investor concerns over artificial intelligence (AI) investments impacted major tech firms. The benchmark Korea Composite Stock Price Index (KOSPI) dropped 2.26 percent, or 130.58 points, to 5,637.43, marking a reversal from the previous two days of gains. This decline occurred despite a mixed performance in U.S. markets, with technology shares recovering from their largest weekly loss since June.

Overnight, the Dow Jones Industrial Average dipped slightly, while the S&P 500 and Nasdaq Composite Indexes both rose. Among South Korean companies, Samsung Electronics and SK hynix, a chipmaking rival, saw declines of 1.38 percent and 4.07 percent, respectively. Additionally, Samsung Electro-Mechanics, an electronics component subsidiary of Samsung Electronics, fell by 2.22 percent.

The Korean won strengthened against the U.S. dollar, trading at 1,326.2 won per dollar, up from the previous trading session's close.