22.10.202601:43:01UTC+00South Korean Shares Fall on AI Investment Concerns

The benchmark KOSPI dropped nearly 2% to around 5,635 on Thursday, erasing the previous session’s gains as mounting doubts over the profitability of AI infrastructure investments pressured technology stocks. Samsung Electronics and SK hynix declined more than 1% and 2%, respectively, amid growing investor skepticism that debt-financed AI spending will generate returns sufficient to justify such large-scale outlays, heightening concerns over valuations and the sustainability of future investment.

Other notable losers 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%).

In contrast, semiconductor exports surged 222.5% year-on-year in the first 20 days of October, underscoring robust global chip demand and bolstering the earnings outlook for major chipmakers such as Samsung Electronics and SK hynix.