South Korean Shares Plunge as AI Rally Loses Steam Amid Heightened Market Volatility
South Korean shares fell more than 5% on Wednesday as technology stocks extended their losses, which led investors to pause and assess the outlook for the AI sector. Overnight losses on Wall Street also dampened investor sentiment.The benchmark Korea Composite Stock Price Index, or Kospi, fell by 5.4%, or 409.52 points, to close at 7,246.79. The Kosdaq also decreased by 5.6%, or 46.23 points, to end at 785.In economic news, S&P Global Ratings has given an AA long-term foreign currency issue rating to the Republic of Korea's proposed euro senior unsecured notes, according to a recent release.The notes serve as the sovereign's direct, general, unconditional, and unsubordinated external debt.On the corporate front, South Korea's Fair Trade Commission (FTC) began reviewing allegations that Daesang (KRX:001680), Sajo Industries (KRX:007160) subsidiary Sajo CPK, Samyang Corp. (KRX:145990), and CJ CheilJedang (KRX:097950) colluded in bid-rigging and price-fixing in the starch-sugar market.The alleged bid-rigging for starch and starch-based sweetener tenders affected 9.4 billion won in sales between September 2016 and June 2025, the trade watchdog said in a Tuesday release.It also accused Daesang, Sajo CPK, and Samyang of fixing prices for starch and starch-sugar by-products from August 2017 to October 2025, which affected sales of about 1.55 trillion won, it said.The FTC imposed a fine of 234.1 billion won on Daesang and 210.3 billion won on Samyang Corp.Shares of the food companies Daesang fell over 2%, while those of Samyang fell nearly 2%. Shares of the food manufacturer CJ Cheiljedang declined over 1% at market close.
