Kospi Plunges 14.5% on AI Doubts as Rising US Rate Bets Hit Tech
Updated
Updated · The Guardian · Oct 17
Kospi Plunges 14.5% on AI Doubts as Rising US Rate Bets Hit Tech
3 articles · Updated · The Guardian · Oct 17
Summary
South Korea’s Kospi logged its biggest weekly loss since October 2008, dropping 14.5% as investors dumped chipmakers including Samsung and SK Hynix.
Analysts tied the selloff to mounting doubts over AI companies’ borrowing, spending commitments and future profitability, with CoreWeave bonds sliding close to distressed levels.
US inflation data also lifted expectations for further rate increases, adding pressure to growth stocks and knocking 2% off the Nasdaq between Monday and Thursday.
At the IMF’s annual meeting in Bangkok, officials warned an AI-driven boom financed by rising leverage could reverse sharply, threatening economies such as South Korea and Taiwan that are heavily exposed to AI hardware exports.