Korea's stock market fell as concerns over artificial intelligence (AI) overheating resurfaced after an Oracle investor withdrew its investment decision. On the 18th, the KOSPI closed at 3,994.51, down 61.90 points (1.53%) from the previous session, breaking below the 4,000 level again.
Investor sentiment weakened as AI overheating concerns reignited in global equity markets. According to foreign media, private equity firm Blue Owl, which had planned to invest in Oracle, withdrew its $10 billion investment plan. With analysis that Oracle's data center construction will be delayed and growing doubts over whether AI infrastructure expansion is sustainable, global stock markets turned weaker.
On the Korea Exchange, foreigners were net sellers of more than 350 billion won and institutions more than 100 billion won. Only individuals were net buyers, purchasing more than 420 billion won.
Micron, dubbed the "barometer for memory semiconductors," reported strong earnings, but profit-taking emerged in the semiconductor sector. SK hynix inched up, but Samsung Electronics ended lower.
Among large-cap stocks, LG Energy Solution tumbled. It was hit directly by news that its supply contract with U.S. company Ford, worth nearly 10 trillion won, had been canceled. The fallout dragged battery stocks broadly lower in the market.
The persistent weakness of the won is also weighing on the market. In the foreign exchange market, the won traded around 1,478 won per dollar. Even as the foreign exchange authorities stepped in verbally and the financial authorities moved to curb individual investors' overseas stock investments, the measures appeared ineffective. As the won's weakness continues, foreign capital outflows from the domestic stock market are persisting.
The KOSDAQ market also fell more than 1%. The KOSDAQ closed at 901.33, down 9.74 points (1.07%) on the day. It even dipped below the 900 level intraday. Foreigners and institutions were net sellers together on the KOSDAQ as well.
In the KOSDAQ market, pharmaceutical names such as Alteogen and ABL Bio rose, but EcoPro BM and EcoPro fell sharply.