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Kospi drops sharply below 3,900 as investors reevaluate investments in AI

Published: 21 Nov. 2025, 09:47

SHIN MIN-HEE
[email protected]

A screen in Hana Bank's trading room in central Seoul shows the Kospi opening on Nov. 21. [YONHAP]

In the wake of a sharp drop on Wall Street overnight, shares opened under heavy pressure from the outset amid renewed valuation concerns over AI equities.

The Kospi fell 137.06 points, or 3.42 percent, to 3,867.79 in the first 15 minutes of trading, once again dipping below the 3,900 mark.

Overnight, U.S. shares closed lower, led by declines in Nvidia despite strong quarterly results, as investors remained cautious about the recent sharp upturn in AI-related shares and their aggressive investment plans. Analysts said mixed jobs data also dampened expectations for interest rate cuts by the Federal Reserve.

The Dow Jones Industrial Average lost 0.84 percent, while the tech-heavy Nasdaq composite sank 2.15 percent. U.S. chip giants Nvidia slid 3.15 percent and AMD shed 7.87 percent, dragging Korean tech heavyweights into the red as well.

In Seoul, most top-cap shares drifted lower.

Market bellwether Samsung Electronics dipped 4.13 percent, and chip giant SK hynix retreated 7.88 percent.

Leading battery maker LG Energy Solution slid 3.29 percent, and nuclear power plant builder Doosan Enerbility sank 5.53 percent. LG Chem fell 5.15 percent.

Top automaker Hyundai Motor shed 1.34 percent, and its sister affiliate Kia edged down 0.18 percent.

Leading shipbuilder HD Hyundai Heavy went down 3.6 percent, while its rival Hanwha Ocean decreased 3.68 percent.

Leading financial group KB Financial declined 0.58 percent, while internet portal operator Naver lost 0.78 percent. Top steelmaker Posco tumbled 2.8 percent.

The local currency was trading at 1,470.45 won against the greenback at 9:15 a.m., up 0.17 percent from the previous session of 1,467.9 won.

BY SHIN MIN-HEE, YONHAP [[email protected]]