South Korean stock market plunges 6% due to AI concerns leading to a drop in chip manufacturers' stocks.

The South Korean stock market has experienced a sharp decline, with Meta Platform Inc. planning to sell computing power, leading to investor doubts about AI oversupply, causing semiconductor manufacturers' stocks to be sold off. The Kospi index fell by as much as 6.5%, with both Samsung Electronics and SK Hynix dropping by at least 7%. Due to a significant drop in Kospi futures, the exchange temporarily halted algorithmic selling operations. Shares of US companies such as Micron Technology and SanDisk also fell by over 10%. This trend may exacerbate investor concerns about the sustainability of the semiconductor stock rally. Previously, the flourishing development of global AI construction had driven semiconductor stocks to soar. South Korean market heavyweights are at the core of the supply chain, benefiting from sustained market demand for advanced hardware. However, recent drastic fluctuations in the South Korean stock market highlight that market sentiment can quickly change once doubts about the sustainability of this prosperity arise.