South Korean shares fall nearly 3% as AI concerns hit chipmakers
SEOUL: Round-up of South Korean financial markets: South Korean shares slumped nearly 3% on Tuesday as chipmakers dropped on concerns over AI investment, while political instability in France dampened risk appetite across global financial markets. The benchmark KOSPI was down 170.63 points, or 2.96%, at 5,597.38 as of 0132 GMT, after rebounding for two consecutive sessions from a recent six-month…
South Korean shares plummeted nearly 3% on Tuesday due to worries about AI investments in chipmaking firms, while political unrest in France dampened investor sentiment worldwide. The KOSPI index fell 170.63 points, or 2.96%, to 5,597.38 as of 0132 GMT, after two days of recovery from a six-month low. Analyst Seo Sang-young of Mirae Asset Securities noted that while the recent sell-off in AI chip stocks may have been exaggerated in the short term, the underlying credit risks of AI investments remain unaddressed.
South Korean chipmaker Samsung Electronics dropped 1.61%, and SK Hynix declined 4.62%. AI infrastructure startup Elice Group debuted 16% below its IPO price, mirroring broader concerns about AI investment. Battery producer LG Energy Solution slipped 2.08%, and Hyundai Motor and Kia Motors each fell 3.37% and 3.02%, respectively. POSCO Holdings shed 2.23%, and Samsung BioLogics lost 0.63% among the major index constituents. Out of 913 listed stocks, only 95 rose, while 803 declined.
Foreign investors sold shares worth 480.0 billion won ($361.41 million), while the South Korean won gained 0.40% against the US dollar at 1,327.8 per dollar. December futures on three-year treasury bonds increased 0.01 point to 102.93, and the three-year yield rose by 0.2 basis points to 3.882%. The benchmark 10-year yield climbed 6.6 basis points to 4.220%.
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