South Korean stocks tumble over 7% as AI doubts and US inflation fears spark sell-off
The KOSPI fell 7.57% on Thursday, extending a seven-day decline that has erased about 21% of its value since early October.
On Thursday the KOSPI ended at 5,554.22, down 454.59 points or 7.57%, marking its biggest one-day fall since late July and continuing a seven-session slide that has shaved 1,449.52 points, roughly 21%, from the index. The KOSDAQ mirrored the decline, dropping 63.06 points or 7.65%. Heavyweights including Samsung Electronics (-9.91%), SK Hynix (-11.49%), SK Square (-11.03%) and Samsung Electro-Mechanics (-16.16%) led the losses.
Market participants cited growing doubts about AI profitability after a pessimistic Gartner assessment and disappointing third-quarter results from Anthropic. A hotter-than-expected US CPI report, showing a 3.7% year-over-year rise in September, heightened concerns about further interest-rate hikes. In response, both markets triggered sell-sidecar mechanisms and circuit breakers for the first time since late July. South Korean regulators convened an emergency meeting, with Financial Services Commission Chairman Lee Eog-weon urging tighter credit risk management and stronger investor protection.
Why it matters
The sharp market decline highlights heightened investor anxiety over AI valuations and global inflation pressures.
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 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.
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