KOSPI Falls 20% from Peak as AI Investment Doubts Spur Retail Selloff

According to Seoul Economic Daily, the KOSPI has fallen nearly 20% from its recent peak amid intensifying concerns about artificial intelligence equipment investment sustainability and semiconductor profit growth. Retail investors sold a net 1.267 trillion won on the day, with brokerage researchers citing expanded profit-taking as investor fatigue deepens.

Bank of Korea Governor Shin Hyun-sung reiterated the necessity of a base rate increase, citing above-target inflation and improved economic growth. The central bank targets the 7,000-point level as a psychological support line for the index, with near-term direction dependent on U.S. big tech capital expenditure trends and semiconductor company earnings announcements.