South Korean Stocks Plunge Amid AI and Semiconductor Sell-Off
South Korea's benchmark Kospi index suffered a severe decline, with reports indicating drops between 8% and 10%. The sell-off was driven by heavy losses in semiconductor giants Samsung and SK hynix, prompting the Korea Exchange to activate a sidecar to halt program trading. The downturn also weakened the Korean won against the U.S. dollar. Market analysts attribute the volatility to renewed concerns over excess capacity in the AI sector and a broader trend of traders locking in profits following recent rallies. Some experts have compared the current AI boom's volatility to the final months of the dotcom era, noting that the sell-off has spread to other Asian markets, including Japan, and impacted Wall Street.
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