The KOSPI index fell below the 4,000 mark before the close on the 16th. This is the first time in eight trading days since on the 4th (3,982.54).
As of 3:04 p.m. that day, the KOSPI index was trading at 3,999.81, down 2.22% from the previous trading day.
The KOSPI index started flat that day, but the sell-off by foreign and institutional investors intensified, deepening its intraday losses.
At the same time, LG Energy Solution was down nearly 6%. HD Hyundai Heavy Industries (-5.26%), SK hynix (-3.97%), Hanwha Aerospace (-3.19%), Kia (-3.06%), Hyundai Motor (-2.90%), and Samsung Electronics (-1.81%)—most of the top market-cap stocks—were weak.
Investor sentiment appeared to worsen on news during trading that the Trump U.S. administration suspended a partnership with the United Kingdom on artificial intelligence (AI), quantum mechanics, and nuclear technology.
Seo Sang-young, an analyst at Mirae Asset Securities, said, "The United States has effectively formalized a transactional approach that uses security and advanced technology cooperation as leverage to force even allies to make trade concessions," adding, "As a result, concerns that the global AI technology cooperation ecosystem could be undermined came to the fore, widening losses in AI-related groups such as Nasdaq futures."
However, some say it will remain a short-term issue. Seo said, "This issue is not a fundamental factor that will determine the market's direction, so we need to watch the U.S. jobs report, retail sales, consumer price index, and Micron earnings scheduled this week."