Here's the END to South Korea's AI rally...
Over $2.1T (₩2.8 quadrillion) has now been erased from KOSPI’s market value since its June peak.
The AI boom pushed the index to a record 9,385. It’s now nearly 40% below that peak.
This week alone, KOSPI plunged 14.46% to 5,668.05, erasing an estimated $590 BILLION.
Its worst week in 18 YEARS.
A bigger weekly decline than during the COVID panic or the 2024 global selloff.
You have to go back to the 2008 financial crisis to find a worse week.
Back then, collapsing banks and a credit crunch drove the panic.
This time, investors fear debt-funded AI spending won’t deliver enough profits.
Higher US interest-rate have even added pressure.
Has the AI bubble burst?
Over $2.1T (₩2.8 quadrillion) has now been erased from KOSPI’s market value since its June peak.
The AI boom pushed the index to a record 9,385. It’s now nearly 40% below that peak.
This week alone, KOSPI plunged 14.46% to 5,668.05, erasing an estimated $590 BILLION.
Its worst week in 18 YEARS.
A bigger weekly decline than during the COVID panic or the 2024 global selloff.
You have to go back to the 2008 financial crisis to find a worse week.
Back then, collapsing banks and a credit crunch drove the panic.
This time, investors fear debt-funded AI spending won’t deliver enough profits.
Higher US interest-rate have even added pressure.
Has the AI bubble burst?