(LEAD)(News Focus) KOSPI pummeled by AI investment fears, briefly dips below 5,000
SEOUL, Nov. 6 (Yonhap) -- South Korea's benchmark Korea Composite Stock Price In...
South Korea's KOSPI index plummeted more than 8 percent on Friday, briefly falling below the 5,000-point mark due to fears surrounding artificial intelligence (AI) investment. The decline came after a sell-off on Wall Street, fueled by concerns that a Democratic Party victory in the U.S. midterm elections might slow down AI spending.
Samsung Electronics and SK hynix, which make up nearly half of the KOSPI market, saw their shares drop by 6.35 percent and 10.44 percent, respectively. With Democrats gaining control of both the Senate and House of Representatives, analysts predicted a weakening of U.S. President Donald Trump's influence during his remaining term.
Concerns about global AI investment spending were spreading across markets, spiking South Korea's stock market volatility index to a three-month high. South Korea's government responded by easing regulations on leveraged investments for three months, aiming to stabilize the market amid global uncertainties.
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