SEOUL, July 2 (Xinhua) -- South Korean stocks suffered a "Black Thursday" today, with the benchmark KOSPI tumbling nearly 8 percent as a broad sell-off in semiconductor shares rattled investor sentiment amid renewed concerns over excess capacity in the artificial intelligence (AI) sector.
The benchmark Korea Composite Stock Price Index (KOSPI) plunged 655.32 points, or 7.89 percent, to close at 7,648.09, after falling as low as 7,616.33 during intraday trading.
The Korea Exchange activated a sell-side sidecar shortly after the market opened, temporarily halting program trading for five minutes after KOSPI 200 futures dropped more than 5 percent.
Heavyweight chipmakers led the decline. Samsung Electronics fell 9.06 percent, while SK Hynix also posted steep losses of 14.57 percent, following reports that U.S. tech giant Meta Platforms was considering selling access to its AI computing infrastructure, raising concerns over excess AI capacity.
The Korean won also weakened against the U.S. dollar.
The market slump came as the Organization for Economic Cooperation and Development (OECD) warned in a report released Thursday that South Korea's growing reliance on semiconductor exports, while supporting economic growth, has also increased the country's exposure to external shocks and cyclical volatility.
The Paris-based organization urged South Korea to strengthen domestic demand and improve fiscal resilience to cope with mounting structural challenges, including an aging population and slowing labor force growth. ■