Seoul stock market slides as tech shares tumble amid AI and China competition concerns
South Korean equities fell sharply on Tuesday, with the KOSPI dropping over 6% as investors reacted to worries about AI valuations and rising Chinese competition.
On Tuesday morning, South Korea's main stock index fell sharply, losing 386.25 points, which equals a 6.05% decline, after starting the session 3.1% lower. Foreign investors dumped a net 2.3 trillion won of equities, whereas local institutions and retail investors recorded net purchases of 808.9 billion won and 1.27 trillion won. The sell-off was driven by tech stocks, with Samsung Electronics dropping 7.29% and rival SK hynix sliding 8.35%, while other sectors such as defense and automotive also fell.
Gains were limited to a few names, including Hybe, which rose 2.6%, and shipping firm HMM, up 0.23%. Traders are watching the upcoming U.S. consumer price index release for clues on Federal Reserve policy ahead of its October meeting.
Why it matters
The sharp market decline signals heightened investor anxiety over AI valuations and competition from China, affecting South Korea's economy.
How this story developed
- Oct 5 Samsung poised to break 100 trillion won profit mark on memory chip surge
- Oct 8 Samsung disclosed a third‑quarter operating profit of 107.4 trillion won.
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