South Korean Shares Extend Losses on AI Concerns

The benchmark KOSPI edged down 0.09% to around 1,337 on Friday, extending losses for a second session as AI-related concerns weighed on investor sentiment. The sell-off followed overnight losses on Wall Street, led by technology shares, after Alphabet plunged more than 12% as its third-quarter revenue of USD 127.58 billion missed expectations, renewing concerns over returns on massive AI investments. Losses were further compounded by Samsung Electronics (-4.31%), SK Hynix (-7.40%), and Hyundai Motor (-2.74%). Naver also fell 1.49%, despite Nvidia's scheduled USD 1 billion investment next Friday, which will make it the company's third-largest shareholder. Naver has also secured at least USD 9 billion in computing infrastructure. Meanwhile, foreign investors turned net sellers of South Korean stocks in September, offloading KRW 19.11 trillion after recording net purchases in August, amid geopolitical risks and concerns over AI profitability.