Seoul:South Korean stocks experienced a sharp decline of more than 7% on Thursday, driven by significant losses in major chipmakers. This downturn is attributed to growing concerns about the sustainability of artificial intelligence (AI)-related investments and potential interest rate hikes by the Federal Reserve. Concurrently, the Korean won weakened against the U.S. dollar.
According to Yonhap News Agency, the Korea Composite Stock Price Index (KOSPI) opened 5.59% lower and continued to fall, ultimately dropping 454.59 points, or 7.57%, to close at 5,554.22. During the trading session, it hit a low of 5,450.81.
In other news, the South Korean defense ministry stated that the transition of wartime operational control (OPCON) from the United States to South Korea would not be feasible if the conditions required for the transfer keep changing. This statement, made by spokesperson Chung Bin-na, was in response to comments from the chief of the U.S. Forces Korea that the "conditions have changed."
North Korea announced the test-firing of two strategic cruise missiles in the East Sea, potentially from a newly unveiled 3,000-ton-class submarine. This test was aimed at evaluating the readiness of underwater combat systems and enhancing the Navy's strategic capabilities, as reported by North Korea's Korean Central News Agency (KCNA).
Additionally, a special counsel team in South Korea has filed for a new arrest warrant for former first lady Kim Keon Hee, whose detention period is set to expire at the end of October. The request was made to the Supreme Court to ensure her continued custody, as stated by special counsel Min Joong-ki's team.