South Korea's KOSPI drops 2% as global AI stock selloff hits markets

South Korea’s KOSPI fell 2.14% on Friday, heading for a second straight weekly decline as a global selloff in AI-related stocks weighed on sentiment. Samsung Electronics, Hyundai Motor and POSCO Holdings led losses, while foreign investors remained net sellers. The won strengthened against the dollar, and government bond yields declined. The decline followed a more than 1% drop in the Nasdaq on Thursday, as earnings from Tesla and Meta failed to ease AI investment concerns. Despite the recent weakness, the KOSPI has gained 28.5% this year.