Seoul shares are down over 3% as AI jitters escalate. The AI trade is exporting its derating into Asia, keeping semis and high-multiple tech on the defensive until the narrative stabilizes.

What happened: South Korean stocks fell more than 3 percent Tuesday on heavy tech sell-offs tied to concerns about massive AI spending. The KOSPI closed at 5,648.79. Key numbers: KOSPI down 210.29 points, or 3.59 percent. Trade volume 192.4 million shares worth 14.1 trillion won ($10.5 billion), decliners 656 to 220. Why it matters: Analyst Kim Seok-hwan of Mirae Asset Securities said concerns about AI investment profitability persist and a sharp drop in US chip shares weighed heavily on the Korean market. Investors also stayed cautious ahead of US midterm election voting.

South Korean stocks fell more than 3 percent Tuesday on heavy tech sell-offs tied to concerns about massive AI spending. The KOSPI closed at 5,648.79.

Analyst Kim Seok-hwan of Mirae Asset Securities said concerns about AI investment profitability persist and a sharp drop in US chip shares weighed heavily on the Korean market. Investors also stayed cautious ahead of US midterm election voting.