Domestic stock markets plummeted as concerns over interest rate hikes, rising international oil prices, and discussions about slowing artificial intelligence (AI) development converged. Foreign selling focused on semiconductor stocks, causing the KOSPI to drop more than 3% during trading.
On September 14, the Korea Exchange reported that the KOSPI closed at 6,684.37, down 225.54 points (3.26%) from the previous trading day. At one point, it fell to 6,654.82, marking a decline of 3.69%. The KOSDAQ also ended down 13.85 points (1.69%) at 806.79.
Foreign investors sold a net 3.2996 trillion won in the KOSPI, contributing to the index's decline. Institutional investors also sold a net 1.1715 trillion won. In contrast, individual investors bought a net 2.9722 trillion won, seizing the opportunity for bargain purchases.
The semiconductor sector experienced significant losses. Samsung Electronics closed down 4.05% at 249,000 won, while SK Hynix fell 6.35% to 1,697,000 won. Samsung Electronics' preferred shares also dropped by 5.12%.
The market was pressured by concerns over U.S. interest rates and oil prices, along with the emergence of discussions about slowing AI development over the weekend. The U.S. core Consumer Price Index (CPI) for August exceeded market expectations, increasing the likelihood of a Federal Reserve interest rate hike scheduled for September 17. Additionally, international oil prices were under pressure, with Brent crude rising above $108 per barrel amid news of a delay in a meeting regarding the resumption of shipping through the Strait of Hormuz and the suspension of operations on Saudi Arabia's east-west oil pipeline.
The spread of discussions about slowing AI development has also chilled investment sentiment in the semiconductor sector. Dario Amodei, CEO of Anthropic, expressed the need to slow the pace of AI model performance improvements, a sentiment echoed by Sam Altman, CEO of OpenAI, and Elon Musk. In South Korea, Choi Tae-won, chairman of SK Group, remarked at the Ulsan Forum on September 11 that if large resources are invested in AI without a solid path to profitability, concerns about a bubble may arise.
Lee Kyung-min, a researcher at Daishin Securities' FICC Research Department, stated, "The key factor in today's sharp decline is the controversy over slowing AI development. The combination of interest rate and oil price pressures, along with discussions about AI speed regulation, led to foreign selling and program-driven sell-offs." He noted that attention should be paid to whether the KOSPI can hold above the 6,600 level, emphasizing that the resumption of the Hormuz meeting and the direction of U.S. 10-year Treasury yields after the FOMC will be crucial variables for a market turnaround.
However, analysts caution that it remains to be seen whether this adjustment will lead to a slowdown in the AI investment cycle. The discussions about slowing AI development are more about regulating the pace and ensuring safety rather than halting development altogether.
Han Ji-young, a researcher at Kiwoom Securities, remarked, "The discussions about slowing AI development could act as a volatility factor for domestic and international AI and semiconductor stocks, but the current discourse leans more towards regulating the pace and safety verification of development rather than stopping it." She added, "Interpreting this as a slowdown in the AI investment cycle should be avoided, as the key issue is whether it will connect to downward revisions in capital expenditure guidance from hyperscaler companies and weak memory demand."
* This article has been translated by AI.
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