South Korean stocks extended the recovery phase from Friday, with the Kospi gaining 0.72% to 5,708.61 in local afternoon trading. The rebound followed a technology selloff that pushed the benchmark to a six-month low last week, leaving it well below June’s record of 9,385.59.
Semiconductor shares suffered steep losses during the downturn. South Korea’s SK Hynix lost 24% and Samsung declined 17.7%, while Micron fell 12% and Nvidia shed 6.3%.
Borrowing-cost worries added pressure to AI-related investments. Chip manufacturers have benefited heavily from infrastructure spending as hyperscalers compete to expand their data-center capacity, making a potential slowdown in AI financing a concern for the sector.
Against that backdrop, South Korean Finance Minister Lee Hyoung-Il offered reassurance on Saturday, pointing to a persistent imbalance between semiconductor demand and available supply.
Speaking to CNBC in Bangkok during the annual meetings of the IMF and World Bank, Lee said the industry’s expansion should continue through at least 2027. His assessment rested on the sizeable gap that remains between demand and supply, even as producers add capacity.
Additionally, the International Monetary Fund Managing Director Kristalina Georgieva at the same conference in Bangkok last week also offered a nuanced assessment of artificial intelligence, citing Amara’s Law—the tendency to overestimate the short-term benefits of new technologies while underestimating their long-term transformation. She acknowledged that AI could bring prosperity, but also risks at the same time. The MD cautioned that it is possible to face a short-term disappointment that could lead to a disorderly market correction across asset classes.
