Seoul:South Korean shares experienced a significant decline of nearly 4 percent on Tuesday, driven by growing concerns over investments in the artificial intelligence (AI) value chain, which triggered a sell-off in major chip stocks. Meanwhile, the Korean won gained strength against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) fell by 215.27 points, or 3.73 percent, closing at 5,552.74, after reaching a low of 5,493.24 during the session. The index had opened 0.6 percent lower and continued to fall amid mounting worries about AI-related sectors and escalating protests in France, which diminished the appeal of risky assets.
The KOSPI had previously risen for two consecutive sessions following a steep sell-off due to concerns about AI-related investments. From October 6 to the previous Thursday, the index had dropped approximately 21 percent over seven trading sessions. In the U.S., stocks ended mixed overnight as technology shares recovered from their most significant weekly decline since June.
Samsung Electronics, a key market player, saw its shares drop 2.98 percent, closing at 211,500 won, while competitor chipmaker SK hynix fell 4.23 percent to 1.22 million won, marking its lowest close since April. The Korean won was quoted at 1,328.1 won against the U.S. dollar at 330 p.m., an increase of 2.2 won from the previous session's close.