13.10.202601:35:20UTC+00South Korean Shares Plunge to Over 2-Month Low

The benchmark KOSPI tumbled over 6% to around 5,990 on Tuesday, its lowest level since late July, as mounting concerns over AI-related valuations and intensifying Chinese competition sparked heavy selling in semiconductor shares. Samsung Electronics and SK hynix dropped more than 6% and 8%, respectively, following reports of technological advances at Chinese rival CXMT and renewed doubts about the durability of AI-driven spending.

At the same time, Brent crude climbed above $106 per barrel amid escalating tensions in the Middle East, stoking fears of imported inflation and a more challenging outlook for interest rates. Investors are now looking to September US CPI data for additional guidance on the Federal Reserve’s policy path.

Other notable decliners included SK Square (-10.1%), Samsung Electro-Mechanics (-7.3%), Hyundai Motor (-5.8%), LG Energy Solution (-2.6%), Doosan Enerbility (-2.5%), Hanwha Aerospace (-5.1%), and HD Hyundai Heavy Industries (-3.0%). Persistent foreign investor outflows added further pressure to the market.