South Korean market crashes over 7% as AI doubts and US inflation trigger circuit‑breaker halt
The KOSPI fell 7.57% to 5,554.22, marking its biggest one‑day decline since late July and extending a seven‑session slide that has erased roughly 21% of its value. Heavyweights Samsung Electronics (-9.91%), SK Hynix (-11.49%), SK Square (-11.03%) and Samsung Electro‑Mechanics (-16.16%) led the losses. Traders pointed to a pessimistic Gartner assessment of AI profitability and a US consumer‑price index that rose 0.6% month‑on‑month, lifting the annual rate to 3.7%. The Korea Exchange responded by activating a 20‑minute circuit‑breaker halt and a sell‑side sidecar to curb the tumble.
How this was covered
- Left-leaning outlets covered this 71h later
- The two sides describe this in almost entirely different words
Why it matters
The plunge shows how concerns over AI spending and US inflation can quickly destabilise South Korea’s tech‑driven equity market, affecting investors and major exporters.
How this story developed
- Oct 2 Seoul market slips modestly as US stocks close higher
- Oct 8 The market recorded a third straight day of losses.
- Oct 12 The dollar stayed close to its 18-month high while oil prices swung amid intensified Houthi attacks and anticipation of the US CPI report.
- Oct 13 South Korean equities fell over 3% as Asian markets slipped, mirroring a 2.7% drop in a US semiconductor index and fading AI optimism.
- Oct 13 The decline continued a multi‑day slide in the index.
- Oct 14 US semiconductor index fell 2.7% and the Nasdaq 100 slipped 0.7%, widening the regional decline.
- Oct 15 Peso slipped to 63.06 per dollar.
- Oct 15 KOSPI dropped over 7% and triggered a 20‑minute circuit‑breaker halt and sell‑side sidecar activation.
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