South Korean KOSPI Drops 5% Amid Deepening AI Stock Rout
· Business · Economic Times, Bloomberg
South Korea’s KOSPI index fell 5% on Tuesday, extending its decline to nearly 40% from its peak earlier this year. The sell-off is driven by a global downturn in AI-linked stocks, with chip giants SK Hynix and Samsung plunging 35% and 22% respectively. Data-center infrastructure firm Elice Inc. also saw its shares drop 32% during its Seoul trading debut. Investors are increasingly concerned about the sustainability of massive AI spending and the credit risks associated with the sector. Stronger-than-expected US inflation data has further pressured the index, which now trades at 5,554.22.
Why it matters
The sharp decline in South Korean chipmakers reflects broader investor anxiety over the profitability and sustainability of the global AI boom.
Read the original report — Economic Times
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