In brief
The KOSPI slid 1.8% to 5,263.26 at the open, with technology firms dropping more than 5%. Investor fears center on a broad AI regulatory framework that could impact large tech and conglomerate companies, triggering a market sell‑off amid global equity volatility.
South Korean stocks opened sharply lower on Tuesday as investors worried that the U.S. mid‑term election would lead to tighter AI regulation. The KOSPI fell 120.54 points, a drop of 1.8%, ending the session at 5,263.26.
Technology shares were hit hardest, falling more than 5% at the open. The market’s fall triggered the Korean Exchange’s circuit‑breaker rule, leaving the 5% sell‑off threshold in place for the day.
Investors cited the potential impact of a broad AI regulatory framework on large technology and conglomerate firms. They jostled away from riskier shares, forcing a sharp shift in risk appetite.
The downturn comes amid continued volatility in global equities, with heightened concerns over regulation and geopolitical tensions.
