South Korean Stocks Fall on AI Fears

2025-12-16 02:06 By Mariene Camarillo 1 min. read

The benchmark KOSPI fell 2.24% to close at 3,999 on Tuesday, extending losses for a second consecutive session as lingering concerns over stretched AI valuations and a renewed tech stock sell-off weighed on sentiment.

Investors are shifting their attention to the government’s plan to channel over KRW 30 trillion into AI and other strategic sectors next year through the newly launched Public Growth Fund.

While the initiative targets industries such as semiconductors, secondary batteries, biotechnology, and future mobility, analysts caution that the scale of investment may not immediately ease market skepticism toward high-valuation tech stocks.

Separately, sentiment was lifted after South Korea and Britain signed an upgraded FTA that lowers the tariff-free threshold for Korean cars from 55% to 25%, easing access for automakers.

Major decliners included Samsung Electronics (-0.29%), SK Hynix (-1.90%), LG Energy Solution (-3.62%), Hyundai Motor (-1.70%), and Doosan Enerbility (-2.53%).



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