South Korean Shares Fall Sharply on Tech, AI Bubble Concerns

South Korean stocks have experienced notable declines amid growing concerns of an artificial intelligence (AI) bubble, echoing losses seen in U.S. tech giants and driven by warnings from OpenAI CEO Sam Altman about parallels to the late-1990s dot-com bubble. The KOSPI index has fallen sharply, with key tech and semiconductor companies such as SK Hynix and Samsung Electronics among the most affected, alongside declines in battery, biotech, shipbuilding, IT, and financial sectors. Investor caution has intensified ahead of the Federal Reserve's Jackson Hole economic policy symposium, where Fed Chair Jerome Powell is expected to outline the central bank's economic outlook, influencing market sentiment. The market is also influenced by geopolitical tensions following the U.S.–Russia summit, which failed to advance progress toward a ceasefire, adding to the risk aversion in Asian markets. Despite some industrial and financial stocks showing resilience, the overall market mood remains cautious due to concerns about overvaluation in AI-related sectors and uncertainty surrounding U.S. monetary policy and global economic conditions. The South Korean won has weakened against the U.S. dollar during this period, reflecting broader investor apprehension.