KOSPI plunges 5% on US inflation, AI selloff

SEOUL, October 15 (AJP) — South Korean stocks plunged more than 5 percent at the open Thursday as heavy foreign selling battered semiconductor shares, following stronger-than-expected U.S. inflation data. A sharp overnight selloff in artificial intelligence (AI)-related stocks also weighed on sentiment.

The benchmark KOSPI stood at 5,687.84, down 5.34 percent, while the KOSDAQ dropped 5.48 percent to 778.72 as of 9:12 a.m.

Foreign investors sold a net 355.6 billion won ($265 million) of KOSPI shares, while retail investors unloaded 124.8 billion won ($93 million). Institutions bought a net 459.8 billion won ($343 million), but failed to offset the selling pressure.

The selloff followed the release of U.S. inflation data that raised concerns about prolonged price pressures and interest rates. U.S. consumer prices rose 3.7 percent in September from a year earlier, above market expectations of 3.6 percent, while core inflation came in at 2.6 percent, exceeding the 2.5 percent forecast.

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