Seoul: South Korea's stock market has seen a staggering loss of approximately $2 trillion in value since its peak in June, driven by a significant downturn in artificial intelligence and semiconductor shares. The Korea Composite Stock Price Index (KOSPI) experienced a 1.23% drop, closing at 5,593.56 points on Thursday. This decline comes on the heels of a 10.84% plunge on Tuesday and a subsequent 5.98% drop on Wednesday.

According to Anadolu Agency, the KOSPI fell to an intraday low of 5,262.77 points on Wednesday, marking a 43.9% decline from its record intraday high of 9,385.59 reached on June 19. The reported 44% market crash reflects the maximum intraday peak-to-trough decline, rather than changes between closing levels. At Thursday's close, the KOSPI remained approximately 38.6% below its record closing high of 9,114.55, achieved on June 22. Estimates indicate that South Korean equity market capitalization has decreased by about $2 trillion to $2.18 trillion since the market's peak.

Major semiconductor and AI-linked companies have been significantly affected by the selloff. Samsung Electronics shares saw a cumulative decline of 18.5% over three sessions, while SK Hynix experienced a 27.2% drop. SK Hynix's shares are now estimated to be about 55% below their June peak, with Samsung roughly 44% below its high. Naver, a leading internet and AI company in South Korea, faced a two-day decline of about 10.4%.

The downturn continued despite record quarterly results from Samsung and SK Hynix, as investor focus shifted to concerns over the long-term viability of massive expenditures on AI data centers and chipmaking capacity. Additionally, investor worries have heightened due to increasing competition from Chinese memory-chip manufacturers, particularly following the stock market debut of ChangXin Memory Technologies and advancements in China's domestic chipmaking equipment industry.