Korean Stocks Drop 20% From Peak as AI Fears Spread

South Korea's equity market has extended its decline, with the benchmark index falling 20% from its recent peak, meeting the common definition of a technical bear market. The sell-off has accelerated as investors reassess the outlook for artificial intelligence demand, a sector that had driven much of the market's previous gains.

The drop reflects growing anxiety that the AI boom may be cooling, which has hit Korean stocks particularly hard given the country's heavy exposure to semiconductor and technology stocks. Companies like Samsung Electronics and SK Hynix, key suppliers to the AI supply chain, have seen their shares decline sharply. For traders, this move underscores how quickly sentiment can shift in a market that had priced in aggressive AI growth. Those following the action can track the KOSPI index and related stocks on NowPrice's live dashboard to monitor real-time price changes and volatility.

Looking ahead, traders will watch for further data on AI-related capital expenditure from major tech firms, as well as any policy response from South Korean authorities. The index's ability to hold above key support levels will be critical in determining whether this correction deepens or stabilizes. Global cues, particularly from US tech earnings and Federal Reserve policy, will also influence sentiment in the coming weeks.