South Korea KOSPI drops almost 5% after AI stock selloff
South Korea's KOSPI index took a big hit on Monday, dropping almost 5% as investors quickly backed out of AI-related stocks.
The selloff was so sharp that trading had to be paused for five minutes to calm things down.
Since reaching its peak in late June, the KOSPI has now lost 28%, making this the fourth straight week it's been in the red.
Korean chip and auto stocks tumble
Big names like SK Hynix and Samsung Electronics, both major players in AI chips, saw their shares fall by nearly 6%.
Hyundai Motor fell 7% and Kia Corp. dropped 7.5%, partly due to a strike at Hyundai.
Even with all this turmoil, foreign investors still bought up $280.3 million worth of shares, and the won edged up slightly against the dollar.
Treasury bond yields rose too, showing that investors are staying cautious while markets remain volatile.