Kospi Enters Bear Market Territory After 5 Percent Drop as AI Rally Unwinds
South Korea's benchmark index has now lost more than 31 percent from its June peak, with retail investors accelerating the selloff through heavy net sales and reduced cash balances.
South Korea's Kospi index fell 5 percent on Tuesday, pushing it into bear market territory after a two-day slide that reached nearly 14 percent. The drop follows a tech-driven advance that carried the index to 9,385.59 points in June before concerns over artificial intelligence valuations began to surface. Market participants are now openly asking whether the AI stock frenzy has run its course.
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