South Korean Shares Fall on AI Investment Concerns
The benchmark KOSPI fell nearly 2% to around 5,635 on Thursday, reversing gains from the previous session as concerns over the profitability of AI infrastructure investments weighed on technology shares. Samsung Electronics and SK hynix fell more than 1% and 2%, respectively, as investors questioned whether returns from debt-backed AI spending would justify the massive outlays, raising concerns over valuations and future investment. Other notable decliners included LG Energy Solution (-4.3%), SK Innovation (-6.9%), Hyundai Motor (-2.4%), Samsung SDI (-3.1%), Kia Corporation (-1.4%) and HD Hyundai Heavy Industries (-2.0%). Meanwhile, semiconductor exports surged 222.5% year-on-year in the first 20 days of October, highlighting continued chip demand and supporting the earnings outlook for Samsung Electronics and SK hynix.
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The benchmark KOSPI fell nearly 2% to around 5,635 on Thursday, reversing gains from the previous session as concerns over the profitability of AI infrastructure investments weighed on technology shares. Samsung Electronics and SK hynix fell more than 1% and 2%, respectively, as investors questioned whether returns from debt-backed AI spending would justify the massive outlays, raising concerns over valuations and future investment. Other notable decliners included LG Energy Solution (-4.3%), SK Innovation (-6.9%), Hyundai Motor (-2.4%), Samsung SDI (-3.1%), Kia Corporation (-1.4%) and HD Hyundai Heavy Industries (-2.0%).
Meanwhile, semiconductor exports surged 222.5% year-on-year in the first 20 days of October, highlighting continued chip demand and supporting the earnings outlook for Samsung Electronics and SK hynix.