FX.co ★ South Korean Stocks Slide Amid AI Valuation Concerns

On Friday, the KOSPI index fell sharply by 3.25% to approximately 3,875, erasing gains made in the previous session as selling pressure intensified across the market. The index was notably impacted by renewed declines in leading technology stocks, as concerns about high valuations in the AI sector once again came to the forefront. This downturn mirrored movements in the United States, where an initial rally led by Nvidia lost steam, triggering a broader retreat from risk-sensitive assets. Investor anxiety rose due to the market's substantial exposure to semiconductor, power equipment, and nuclear technology sectors, which have benefitted from the AI boom but remain highly susceptible to shifts in market sentiment. Every domestic sector experienced declines, with significant losses recorded in Samsung Electronics (-4.27%), SK Hynix (-7.79%), Hanwha Aerospace (-5.68%), Doosan Enerbility (-5.34%), and LG Energy Solution (-2.15%).