18.12.202501:37:00UTC+00Korean Stocks Slide Amid AI Bubble Concerns

On Thursday, the benchmark KOSPI index experienced a decline of 1.28%, settling near 4,004. This downward movement came as investor sentiment weakened due to renewed concerns about the valuations in the artificial intelligence sector. The downturn was initiated by reports of a significant investor pulling out of Oracle's data center project, resulting in Oracle shares plummeting by over 5% and exerting downward pressure on other AI-associated stocks like Broadcom and Nvidia. In Seoul, most large-cap stocks mirrored overnight losses from Wall Street, with technology and semiconductor sectors bearing the brunt. Key players like Samsung Electronics slid by 0.46%, LG Energy Solution dropped a significant 6.50%, Hyundai Motor decreased by 1.22%, and Hanwha Ocean fell by 2.59%. Meanwhile, there were gains observed in SK Hynix, which rose 1.18%, Samsung Biologics increased by 1.03%, and SK Square advanced by 2.47%. Notably, LG Energy Solution's shares suffered after the announcement of a KRW 9.6 trillion battery supply agreement termination with Ford Motor Co., attributed to policy adjustments and a more subdued forecast for electric vehicle demand.