South Korea's KOSPI down 39% from highs after AI selloff
Business
South Korea's main stock index, KOSPI, slid 5% on Tuesday after a wave of selling in AI-related stocks.
The index has now lost about 39% from its high earlier this year, echoing a global trend that's wiped out more than $1 trillion in market value from 20 of the world's most valuable AI and semiconductor companies.
South Korea semiconductor selloff trims gains
Major players like SK Hynix and Samsung Electronics saw their shares drop 35% and 22%, while new market entrant Elice fell 32% right out of the gate.
Since South Korea's economy leans heavily on these semiconductor firms, the selloff has put a real dent in this year's gains, down to about 30%, after peaking at 116% in June.
Concerns over risky AI investments and hot US inflation numbers made things even shakier for investors.