KOSPI Falls 2.25% on AI Concerns and Oil Spike

Seoul — South Korea’s KOSPI fell 2.25% to 6,754 on Sept. 14 as sharp declines in major technology stocks and a jump in oil prices tied to regional tensions pushed the benchmark lower. Samsung Electronics slipped 3.76%, SK Hynix fell 5.30% and SK Square lost about 7%.

Trading reflected investor concern about the near-term outlook for artificial intelligence spending after an Anthropic employee resigned last week warning of extreme risks. Anthropic CEO Dario Amodei published a lengthy post urging a slowdown in AI model development. Industry figures including Sam Altman and Elon Musk signaled support for slowing development. Market participants viewed those developments as a potential drag on demand for memory chips and graphics processors.

Global crude benchmarks rose sharply. Brent crude reached about $106.90 per barrel, up roughly 2.25% on the day, and West Texas Intermediate moved to about $102. Oil prices rose after Saudi Arabia closed its East–West pipeline following repeated attacks by Iraqi militias, a step that reduced the kingdom’s ability to transport oil without using the Strait of Hormuz. Traders linked the pipeline closure and ongoing regional tensions to tighter supply expectations.

Higher energy costs pose risks for South Korea, which imports most of its oil from the Middle East. Investors also took note of former U.S. President Donald Trump’s comment that any conflict between the United States and Iran would end after the U.S. midterm elections while assessing the likely duration of geopolitical risk.

Technical indicators showed weakness on the KOSPI. The index is about 28% below its highest level this year and is trading near the lower edge of an ascending channel that resembles a rising wedge. The KOSPI remained below its Supertrend indicator, under the 50-day exponential moving average and below a major Murrey Math pivot. Some chart analysts identified a next downside reference near the 6,000 level if selling continues.

Looking ahead, market participants flagged the Federal Reserve’s upcoming interest-rate decision and scheduled talks between Iran and Gulf Cooperation Council countries as events that could affect risk appetite and oil flows. Some industry observers noted that large technology firms continue investment in data centers and infrastructure while several Chinese AI firms press ahead with rapid development.