Seoul shares open lower amid persistent AI woes

Korean stocks commenced trading in the morning at a lower level on Thursday, following a sharp rise in the previous session. Concerns regarding the profitability of investments in artificial intelligence (AI) infrastructure weighed heavily on investors' minds. The Korea Composite Stock Price Index (KOSPI), which serves as the benchmark for South Korean equities, fell by 24.68 points, or 0.46 percent, to reach 5,710.98 as of 9:15 a.m. on Thursday.

Meanwhile, U.S. stocks concluded the previous trading day with a mixed performance. AI-related shares experienced a rebound after SpaceX unveiled its quarterly results. The Dow Jones Industrial Average saw a gain of 0.69 percent, while the S&P 500 rose by 0.58 percent and the tech-heavy Nasdaq Composite surged 1.05 percent. Meta Platforms, a major player in the AI sector, reported robust earnings and subsequently increased its investment in AI.

In Seoul, most large-cap shares opened lower than expected. Samsung Electronics, a key constituent of the index, managed to gain 0.34 percent despite opening on a negative note. Its rival in the semiconductor sector, SK hynix, slipped by 0.31 percent. Battery manufacturer LG Energy Solution experienced a decline of 3.65 percent, while Samsung Electro-Mechanics, an electronics component subsidiary of Samsung Electronics, saw a notable rise of 4.79 percent. The Korean won was trading at 1,326.5 won per U.S. dollar at the market's opening bell.