Key facts
- South Korean stocks crashed over 10 percent Tuesday.
- The KOSPI index fell 10.84% to 6,023.66.
- Tech shares were sold off due to doubts over AI investment.
- The KRX activated a circuit breaker, halting trading for 20 minutes.
- The PHLX chip index also declined.
Seoul shares crashed more than 10 percent Tuesday as investors sold off tech shares amid intensifying doubts over the future of large-scale investment into artificial intelligence (AI) infrastructure. The benchmark Korea Composite Stock Price Index (KOSPI) lost 732.09 points, or 10.84 percent, to close at 6,023.66, marking its lowest closing since April 14. The massive selloff followed an overnight decline on Wall Street, triggered by rising skepticism about tech giants' heavy spending on AI. The PHLX chip index, a gauge of U.S. semiconductor giants, extended its recent selloff, falling 2.2 percent. At 10:14 a.m., the KRX activated a marketwide circuit breaker to halt trading of KOSPI-listed shares for 20 minutes due to the sharp plunge.