KOSPI Faces Major Sell-Off as AI and Investors Drive Won's Decline

The KOSPI experienced a significant sell-off, as foreign investors divested over 7 trillion won, leading to a 1.95% weekly decline in the Korean won against the dollar.

Last week, foreign investors sold off more than 7.26 trillion won in KOSPI, contributing to a sharp decline in South Koreas stock market index.
In the Seoul foreign exchange market, the dollar-won exchange rate closed at 1,461.5 Korean won on the 7th, marking a 1.95% depreciation of the Korean won.
The sell-off was influenced by factors including concerns around artificial intelligence and its impact on sectors like semiconductor manufacturing, notably affecting companies like SK Hynix.

Why It Matters

This sell-off underscores growing investor concerns about the South Korean economys stability amid technological shifts, particularly in artificial intelligence and semiconductor sectors, which are crucial for economic growth.