Seoul Shares Open Lower as AI Profitability Concerns Persist
South Korean stocks opened lower Thursday as investors reassessed the profitability of artificial intelligence infrastructure spending following the previous session’s sharp rebound. The KOSPI was down 0.46 percent at 5,710.98 by 9:15 a.m., while the won weakened slightly against the U.S. dollar.
South Korean stocks opened lower Thursday as investors continued to weigh whether heavy spending on artificial intelligence infrastructure will generate sufficient returns, tempering momentum from the previous session’s sharp rebound.
The benchmark Korea Composite Stock Price Index opened 1.14 percent lower. It later pared much of that decline but remained down 24.68 points, or 0.46 percent, at 5,710.98 as of 9:15 a.m.
The cautious start followed mixed signals from overseas markets. Major U.S. indexes finished higher overnight as AI-related shares rebounded after SpaceX reported quarterly results. The Dow Jones Industrial Average rose 0.69 percent, the S&P 500 gained 0.58 percent and the technology-heavy Nasdaq Composite advanced 1.05 percent. Meta Platforms also reinforced its commitment to AI investment after reporting solid earnings.
Those gains were not enough to erase lingering concerns in Seoul about the scale, financing and eventual profitability of global AI infrastructure projects. The Korean market has been especially sensitive to shifts in sentiment toward AI because semiconductor and electronic-component companies carry substantial weight in the country’s major indexes.
Most large-cap shares began the session lower, although performance within the technology sector was mixed. Samsung Electronics recovered from an initial decline to trade 0.34 percent higher. Rival memory-chip maker SK hynix slipped 0.31 percent. Samsung Electro-Mechanics, which produces electronic components, jumped 4.79 percent, standing out against the broader weakness.
Battery stocks faced heavier pressure. LG Energy Solution fell 3.65 percent in early trading, adding to the uneven tone among Korea’s largest exporters and manufacturers.
The foreign-exchange market was comparatively steady. The Korean won traded at 1,326.5 per U.S. dollar at 9:15 a.m., 0.5 won weaker than at the close of the previous stock-market session. A higher won-per-dollar figure indicates a decline in the Korean currency’s value.
Thursday’s early moves showed investors balancing renewed gains in U.S. technology shares against unresolved questions over returns from the global AI investment cycle. The KOSPI’s recovery from its opening loss suggested some buying interest remained, but the broad weakness among large-cap stocks pointed to continued caution after the previous day’s strong advance.