The benchmark KOSPI dropped more than 4% to around 5,417 on Thursday, marking its lowest level in over a week, as mounting concerns over tighter artificial intelligence (AI) regulation following the Democratic Party’s victory in the US midterm elections weighed on risk appetite.
This pullback came despite overnight gains on Wall Street. The Philadelphia Semiconductor Index (SOX) slid 3.1% to a six-month low amid fears that a Democrat-controlled Congress could introduce stricter rules on AI data centers, potentially increasing the cost of power grid expansion and leading to permitting delays.
Semiconductor names led the sell-off in Seoul, with Samsung Electronics (-5.16%) and SK hynix (-7.09%) among the sharpest decliners. Other major stocks also retreated, including LG Energy Solution (-2.11%), Hanwha Aerospace (-5.03%), and Doosan Enerbility (-3.98%).
