Seoul Shares Plummet Amid US Midterm Election AI Concerns

On Thursday morning, South Korean stocks experienced a significant drop as investors reacted to the potential implications of the U.S. midterm elections on artificial intelligence (AI) policies.

The benchmark KOSPI index opened 1.82% lower and continued to decline, falling by 185.77 points, or 3.27%, to 5,498.03 by 11:20 AM. This downturn reflects growing apprehension about how the newly elected Congress might regulate AI data centers.

Despite major U.S. stock indexes closing higher the previous day, the election results raised concerns about tighter regulations that could stifle AI development and trade.

In Seoul, shares of semiconductor companies were particularly hard hit. Samsung Electronics saw a decline of 5.05%, while SK Hynix dropped 6.52%. Other significant losses included Hanmi Semiconductor, which fell 7.58%, and Samsung Electro-Mechanics, down 10.04%.

Additionally, SK Innovation, a leading oil refinery, lost 5.9%, and defense contractor Hanwha Aerospace decreased by 4.76%. The Korean won was trading at 1,342.15 against the U.S. dollar, down 0.65 won from the previous session.