South Korean shares plunged nearly 3 percent, tracking a Wall Street slump triggered by artificial intelligence bubble fears. The KOSPI index dipped to 3,867.81 intraday before closing at 4,004.42. The won slid to a seven-month low against the dollar.
On Wednesday, South Korean shares tumbled amid concerns over an artificial intelligence bubble, mirroring an overnight Wall Street decline. The benchmark KOSPI index lost 117.32 points, or 2.85 percent, closing at 4,004.42 after dipping as low as 3,867.81 intraday and retreating below the 4,200 level just two days after breaching it.
As of 11:20 a.m., the KOSPI had fallen 182.64 points, or 4.43 percent, to 3,939.1, slipping below the 4,000 mark. The tech-heavy KOSDAQ index dropped 16.54 points, or 2.84 percent, to end at 565.4. Market capitalization on the main bourse declined by 97 trillion won (US$67 billion).
The sell-off reflected fears of overvaluation in tech stocks fueled by the AI boom. The Korean won sharply weakened against the U.S. dollar, hitting a seven-month low. After months of staggering gains, analysts suggest the correction is unlikely to persist long-term.
