15.12.202502:03:43UTC+00Korean Shares Fall on Renewed AI Worries

On Monday, the KOSPI index decreased by 1.57% to approximately 4,101, retreating from its nearly one-month high. This downturn was driven by renewed apprehensions regarding a potential bubble in the AI sector, which affected investor sentiment. Caution followed a drop on Wall Street last Friday, where U.S. stocks fell after Broadcom released a less optimistic margin forecast for its AI operations. This announcement reignited concerns that the substantial investments by major U.S. tech companies in AI infrastructure might not yield significant returns in the near term, thereby raising doubts about the sustainability of current valuations within the sector. Shares of large-cap stocks fell, with semiconductor companies experiencing leading losses. Among the major losers were Samsung Electronics (-3.31%), SK Hynix (-3.33%), Hyundai Motor (-1.82%), Doosan Enerbility (-3.14%), Hanwha Aerospace (-4.27%), and HD Hyundai Heavy Industries (-3.14%). Conversely, biotech stocks fared better, with Samsung Biologics up by 4.31%, Celltrion rising 0.59%, and LG Chem gaining 0.34%.