Asia's AI Bubble Bursts as South Korea's KOSPI Plunges 41%

Asia's artificial intelligence investment bubble has burst, with South Korea's KOSPI index falling over 8% on October 15 and dropping 41% from its June peak, triggering a broader regional selloff. The crash has spread to China, where the STAR50 index fell 40% from its July high and the CSI 300 entered bear market territory. Nearly $1.4 trillion in market value evaporated across East Asia's hardware supply chain in October, as investors grew concerned about falling profit margins. Chinese chipmaker CXMT's entry into the DRAM market doubled its global share to 10%, compressing prices and profits across the sector. Analysts compare the situation to the 1840s railway speculation bubble, with concerns now mounting about whether the correction will spread to US AI companies.