S.Korea's KOSPI tumbles nearly 5% as chipmakers slump on AI worries

S.Korea’s KOSPI tumbles nearly 5% as chipmakers slump on AI worries, with the benchmark index triggering circuit breakers amid sharp selling in semiconductors. On July 7 in Seoul, the KOSPI closed down 395.02 points, or 4.9%, at 7,656.31 after dropping 8.2% earlier. The fall marked the sixth time this year that circuit breakers were activated on the index, driven by heightened volatility in chip stocks. Samsung Electronics and SK Hynix led the decline, falling 6.9% and 6.1% respectively, after both fell more than 10% intraday. Investors were concerned whether record earnings linked to AI can be sustained, with commentary noting expectations may already be elevated. LG Energy Solution slid 6.4% after forecasting a 77% drop in April-June operating profit, while Hanwha Ocean plunged 22.7% after a Canada-led selection of German submarines. Foreigners sold a net 2.9 trillion won, while retail investors bought 3.2 trillion won.