Seoul Stock Index Drops 1.5% as Oracle Pullout Triggers AI Profitability Fears
Updated (2 articles)
KOSPI Slides Over One Percent on Dec 18 The KOSPI fell 61.9 points to 3,994.5, a 1.53 % decline, marking the sharpest drop since early November [1]. Trade volume reached 576 million shares, valued at 12.8 trillion won, with losers outnumbering gainers 685 to 195 [1]. The slide reflected heightened investor anxiety over AI‑related earnings prospects [1].
Oracle Funding Withdrawal Sparks AI Profitability Concerns Oracle shares tumbled more than 5 % after a primary funding partner withdrew from its data‑center project, intensifying doubts about AI sector profitability [1]. Analysts linked the pullout to broader valuation worries that have been pressuring both Korean and U.S. markets [1][2]. Micron’s unexpected earnings beat provided a modest counterweight, tempering the overall market decline [1].
Large‑Cap Movers Reflect Mixed Reactions Samsung Electronics slipped 0.28 % to 107,600 won, while LG Energy Solution plunged 8.9 % to 378,500 won following Ford’s cancellation of a supply agreement [1]. Hyundai Motor fell 1.22 % to 282,500 won; SK hynix rose 1.09 % in the earlier session, and Naver slid 0.87 % [1][2]. The uneven performance underscores sector‑specific sensitivities to the AI narrative [2].
Won Strengthens and Bond Yields Decline The Korean won traded at 1,478.3 per U.S. dollar, up 1.5 won, indicating modest currency appreciation amid market turbulence [1]. Three‑year Treasury yields slipped to 2.967 % and five‑year yields to 3.196 %, pushing bond prices higher [1]. Investors appear to be shifting toward safer assets as AI‑related risk perception rises [1].
Sources (2 articles)
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[1]
Yonhap: Seoul stocks sink on AI valuation concerns – Reports a 1.53 % KOSPI drop to 3,994.5, Oracle data‑center partner exit, Micron earnings surprise limiting losses, large‑cap declines, won and bond movements .
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[2]
Yonhap: Seoul stocks open sharply lower on renewed AI valuation concerns – Details a 1.33 % KOSPI opening fall to 4,002.6, U.S. index retreats, Oracle >5 % slide, mixed large‑cap activity, won strengthening .
Timeline
Dec 17, 2025 – The KOSPI opens sharply lower, down 1.33% to 4,002.6, as renewed AI‑valuation fears spread after a primary investor pulls out of Oracle’s data‑center project. The slide mirrors simultaneous drops in U.S. indexes—S&P 500 down 1.2% and Nasdaq down 1.8%—showing cross‑border contagion of AI hype skepticism. Large‑cap stocks diverge: Samsung falls 0.65% while SK Hynix rises 1.09%; LG Energy Solution plunges 6.74% after a supply‑deal cancellation. The won strengthens to 1,478.5 per dollar, reflecting safe‑haven demand. [2]
Dec 18, 2025 – The KOSPI sinks 1.53% to 3,994.5, extending the AI‑profitability sell‑off triggered by Oracle’s data‑center setback. Oracle slides more than 5% after its funding partner withdraws, intensifying worries that AI projects may not deliver expected returns. Daishin Securities analyst Lee Kyoung‑min notes, “Oracle’s data center projects have fanned concerns over AI profitability, but Micron’s earnings surprise helped limit the decline.” Large caps mostly decline, with Samsung down 0.28% and LG Energy Solution down 8.9% after Ford cancels a supply deal. The won trades at 1,478.3 per USD and bond yields fall, indicating broader market risk aversion. [1]