Key facts
- The South Korean won fell against the U.S. dollar on Tuesday.
- Foreign investors were net sellers of local stocks.
- The KOSPI index plunged 5.46 percent.
- Concerns related to artificial intelligence investments contributed to the market drop.
- Samsung Electronics and SK Hynix were particularly affected by news of China's CXMT chip technology breakthrough.
- Foreign investors sold a net 4.5 trillion won (US$3.4 billion) of local shares.
The South Korean won weakened against the U.S. dollar on Tuesday, with foreign investors continuing to sell local stocks as the benchmark KOSPI index experienced a significant decline. The won was quoted at 1,345.1 won per dollar at 3:30 p.m., down 10 won from the previous session's close.
The KOSPI index plunged 5.46 percent earlier in the day, driven by renewed concerns surrounding artificial intelligence investments. Major semiconductor manufacturers Samsung Electronics and SK Hynix were particularly impacted by news reports indicating that China's CXMT has achieved a breakthrough in advanced chip technology.
Foreign investors offloaded a net 4.5 trillion won (US$3.4 billion) worth of South Korean shares during the regular trading session, marking the sixth consecutive session of outflows.