Kospi dropped as DeepSeek AI model may reduce memory demand
Business
South Korea's Kospi index dropped as much as 3.2% on Monday, with big names like Samsung and SK Hynix sliding more than 4%.
The sell-off came after news that DeepSeek's new AI model might lower demand for memory chips, adding to concerns about the high costs of building AI tech.
US chipmakers posted 8th straight losses
The dip wasn't just in Korea: US chipmakers also saw losses for the eighth day straight, as investors worried about expensive AI infrastructure.
Kang DaeKwun, chief executive officer at Life Asset Management, pointed out that US spending on AI really impacts Korean firms' profits.
Even with these swings, the Kospi is still up more than 30% this year thanks to earlier gains from booming AI memory prices.