Seoul shares open lower after rebound amid AI concerns

Korean shares began the trading day on a downward trajectory on Tuesday, suffering declines in prominent tech corporations as investors sought to capitalize on recent gains despite concerns surrounding investments in the artificial intelligence (AI) sector. The benchmark Korea Composite Stock Price Index (KOSPI) slipped 130.58 points, or 2.26 percent, to 5,637.43 by 9:15 a.m., reversing its overnight surge on Wall Street.

The index had surged for two straight days following a significant drop due to worries over AI-related industries. Over a span of seven trading days, the KOSPI plummeted 20.7 percent from October 6 to Thursday. Overnight, U.S. markets ended in a seesaw fashion, with technology shares rebounding after their sharpest weekly decline since June.

The Dow Jones Industrial Average slipped 0.07 percent, the S&P 500 marginally rose 0.41 percent, while the tech-focused Nasdaq Composite Index surged 1.11 percent, closing at 26,430.89. Tech-oriented companies drove the market's downturn in Seoul. Samsung Electronics, the market's leading barometer, slipped 1.38 percent, while its chipmaking counterpart, SK hynix, fell 4.07 percent. Samsung Electro-Mechanics, an electronics component manufacturer, also experienced a decline.