South Korean stocks continued to decline on December 16, extending a pullback from December 15, as concerns over AI sector valuations resurfaced following the earlier weekly recovery. The KOSPI fell 1.75 percent to 4,019.05 amid caution ahead of key U.S. economic data.
Following a rebound on December 12 that snapped a prior three-day losing streak—driven by strong Broadcom earnings easing AI bubble worries—South Korea's KOSPI index resumed its decline. It fell 1.84 percent on December 15 to 4,090.59, triggered by disappointing AI investment profitability outlooks from Broadcom and Oracle. Foreign and institutional investors sold shares worth 957 billion won and 474 billion won, respectively, while retail investors bought 1.4 trillion won worth.
On December 16, the KOSPI opened 0.9 percent lower at 4,053.92 and extended losses by late morning, dropping 71.54 points or 1.75 percent to 4,019.05. Notable movers included Samsung Electronics down 1.24 percent, SK hynix falling 2.71 percent, LG Energy Solution shedding 5.31 percent, Hyundai Motor dipping 2.56 percent, and Naver declining 3.95 percent.
The previous night's U.S. session saw tech sell-offs, with the S&P 500 down 0.2 percent and Nasdaq falling 0.6 percent. Investors await delayed U.S. nonfarm payrolls and consumer price data for October and November due to the government shutdown, which could impact Federal Reserve policy. The won traded at 1,470.7 against the dollar, up 0.3 won. Daishin Securities analyst Lee Kyoung-min noted, "Concerns surrounding an AI bubble reemerged right after the financial market digested the December FOMC meeting."
