FX.co ★ South Korean Shares Slip on AI Valuation Fears

The KOSPI benchmark index dropped by 1.54% to approximately 3,965 on Friday, erasing the previous session's gains and reaching its lowest level in two weeks after losses experienced on Wall Street overnight. This decline in Seoul was in step with the setbacks in major U.S. indices, which tumbled due to renewed concerns about a potential AI bubble and signs of a cooling labor market. Anxiety over potentially overvalued AI-related stocks significantly impacted large-cap technology firms, notably those heavily involved in the semiconductor and artificial intelligence sectors, consequently pulling the broader market down. Most industry sectors experienced losses, with technology stocks leading the downward trend. Notably, SK Hynix declined by 1.35%, Samsung Electronics by 0.60%, LG Electronics by 4.14%, and Naver by 1.04% in early trading.