KOSPI plunges 14.3% this week amid fading AI investment optimism
The KOSPI index dropped a massive 14.3% this week, its steepest fall in nearly two decades, mostly because investors are worried the global AI investment craze might not last.
Even though there was a slight bounce back on Friday, the market's seven-day losing streak is its longest since 2024, and nerves are definitely showing.
Foreign investors sold 307.8bn won Friday
South Korea's finance ministry is now keeping a close eye on things, especially in bonds and currency markets.
On Thursday alone, KOSPI tumbled almost 8%, but interestingly, Samsung Electronics and SK Hynix both rose 1.90% and gained 1.82%, respectively, as of 0200 GMT.
Meanwhile, foreign investors aren't sticking around: they sold off 307.8 billion won ($228.77 million) in shares just on Friday, and the Korean won slipped a bit against the dollar too.
It's a shaky moment for anyone watching the markets.