South Korea's KOSPI Falls 6.37% on July 16 as SK Hynix Plunges 11% Amid AI Peak-Out Concerns

According to Chosun Biz, on July 16, South Korea's stock market suffered a sharp selloff on concerns over whether U.S. big tech companies will continue their artificial intelligence investment surge. The KOSPI index dropped 6.37% to 6,820.60, while SK Hynix fell 11% and Samsung Electronics declined 8%. SK Hynix's ADR also closed down 9% on the New York Stock Exchange.

Individual investors responded in divergent ways to the volatility. Some used the dip as a buying opportunity for semiconductor positions, while others took profits or increased cash holdings to prepare for further swings. Securities analysts say the AI cycle is far from over but cautioned that results from Microsoft, Meta, Alphabet, and Amazon—due later this month—will be crucial in determining whether U.S. hyperscalers will sustain capital expenditure plans.