Seoul stocks open lower on Wall Street losses, AI concerns

Korean stocks began the day lower on Friday, mirroring an overnight decline on Wall Street due to growing doubts about the long-term viability of the artificial intelligence (AI) boom. The benchmark Korea Composite Stock Price Index (KOSPI) fell 3.85 percent, reaching 5,709.23 points by 9:15 a.m., down 228.43 points from its previous level.

The day before, the index experienced a 1.24 percent decrease, attributed to profit-taking in major chip stocks, even though Samsung Electronics reported its strongest quarterly earnings ever. However, the global market sentiment was dampened by the performance of Wall Street shares, chiefly due to a setback in the technology sector.

Alphabet, the parent company of Google, saw its shares plummet more than 12 percent after its third-quarter revenue grew by 25 percent year-over-year to $127.58 billion, but failed to meet market predictions. This performance sparked concerns about the profitability of substantial investments in AI technologies. The tech-focused Nasdaq Composite Index declined 1.38 percent, while the Philadelphia Semiconductor Index slipped 1.4 percent, further dampening the outlook for South Korean chip manufacturers.

Among the KOSPI's largest companies, Samsung Electronics experienced a 3.66 percent decline, while chip giant SK Hynix also saw its stock price drop.