KOSPI Composite Index Plunges as Foreign Investors Sell Off on Calls to Slow AI Development; Falls Below 6,700[fn Afternoon Market Update]

[Financial News] The KOSPI Composite Index fell to the 6,600 level as calls to slow the pace of AI development emerged amid unstable macroeconomic conditions. Foreign investors led the decline by selling approximately 3.4 trillion won worth of shares.
According to the Korea Exchange (KRX), as of 2:25 p.m. on the 14th, the KOSPI Composite Index was trading at 6,675.54, down 234.37 points, or 3.39%, from the previous session. The index opened at 6,692.61, down 3.14%, and fell as low as 6,654.82, or 3.69%, during the session.
On the main stock market, retail investors were net buyers of 3.5469 trillion won, while foreign investors and institutions were net sellers of 3.5177 trillion won and 1.3942 trillion won, respectively.
By sector, textiles and apparel rose 1.13%, entertainment and culture gained 1.09%, and transportation and warehousing advanced 1.06%. Construction fell 4.77%, electrical and electronics declined 4.57%, and manufacturing dropped 3.67%.
Among large-cap stocks, Hanwha Aerospace rose 5.18%, Shinhan Financial Group gained 1.42%, and KB Financial Group advanced 1.29%. SK Square fell 7.25%, SK hynix declined 6.07%, and Samsung Electro-Mechanics dropped 5.07%.
Samsung Electronics was also weak. It was trading at 250,000 won, down 9,500 won, or 3.66%, from the previous session.
At the same time, KOSDAQ was trading at 806.19, down 14.45 points, or 1.76%, from the previous session.
Kang Jin-hyuk, a researcher at Shinhan Investment & Securities, explained, "The U.S. consumer price index (CPI) for August was in line with expectations, while core CPI came in slightly above forecasts, raising expectations for a rate hike in September. Anthropic, a U.S. artificial intelligence company, and Elon Musk raised the need to slow the pace of AI development to address AI safety concerns, and OpenAI also withdrew its planned listing for the year for the same reason."
He added, "The semiconductor-centered AI value chain is declining due to macroeconomic pressure and AI concerns. Foreign investors are also selling both spot stocks and futures."
[email protected] Bae Han-geul Reporter