South Korean stocks plunge as tech rout deepens, oil rises

HONG KONG – South Korean stocks suffered one of their steepest plunges yesterday, with the blood-letting that has battered chip firms over the past month deepening as nervous investors unwound their bets on the AI boom.

The tech sector came under assault as traders fret over the mesmerising sums being pumped into artificial intelligence, with investors questioning whether firms’ lofty expectations will be met.

After a two-year rally that has seen several markets and companies around hit record highs, the air is blowing out, with chip firms bearing the brunt of the selling.

The Kospi plunged more than 12% at one point, extending Tuesday’s near-11% collapse as chipmakers SK hynix and Samsung were left hanging.

SK hynix shed almost 20%, having dived more than 14% on Tuesday; it has now lost more than 50% since hitting a record high a month ago, while Samsung plunged more than 12%.

But by the day’s end, the Kospi was 6% lower, while SK hynix and Samsung had halved their losses.