Korean chips are leading the AI unwind: KOSPI fell 3.73% to 5,552.74, SK hynix dropped 4.23% toward its lowest close since April, Samsung 2.98% lower. The index is down about 21% over seven sessions o

What happened: South Korean shares fell nearly 4 percent Tuesday as investors took profits in major chip shares amid persistent concerns over the AI value chain and protests in France. Key numbers: KOSPI fell 215.27 points, or 3.73 percent, to 5,552.74 after a low of 5,493.24. Why it matters: An analyst at Daishin Securities said concerns over credit risks and profitability around AI investment remain unresolved, limiting the sustainability of the rebound, while profit-taking after the prior session's gains pushed the market back into negative territory. Coverage: 3 outlets in 24h

South Korean shares fell nearly 4 percent Tuesday as investors took profits in major chip shares amid persistent concerns over the AI value chain and protests in France.

An analyst at Daishin Securities said concerns over credit risks and profitability around AI investment remain unresolved, limiting the sustainability of the rebound, while profit-taking after the prior session's gains pushed the market back into negative territory.