Exchange-traded funds (ETFs) that track the South Korean market are experiencing a broad decline. As of the latest update, TR Korea (02848) has dropped 10.9%, trading at 1751 HKD. CSOP Hang Seng Korea Technology (03431) has fallen 6.78%, quoted at 10.86 HKD. Samsung Global Semiconductor (03132) is down 3.53%, priced at 68.38 HKD.
Market developments indicate that Meta is reportedly preparing to sell its surplus AI computing capacity to external clients. Industry analysis suggests that if AI investments fail to generate adequate revenue returns, cloud service providers may need to sell off excess computing power to maintain cash flow. Additionally, reports indicate that OpenAI's implementation of optimization solutions could reduce inference runtime costs by over 50%. These factors are intensifying capital market concerns over excessive AI investment.
Influenced by news such as Meta's potential sale of surplus AI computing power, share prices of leading Japanese and South Korean memory chip manufacturers have seen significant declines.
Furthermore, in its recent semi-annual Financial Stability Report, the Bank of Korea stated that, despite increased domestic and international uncertainties, the nation's financial system has generally remained stable, supported by stronger economic growth, resilient financial institutions, and a robust external payments position. However, the report cautioned that financial imbalances may continue to accumulate, driven by accelerating housing price increases in Seoul and surrounding areas, as well as growing investor reliance on leverage to purchase assets. The central bank also noted that while banks and other financial institutions maintain capital and liquidity buffers, credit risks for vulnerable borrowers and corporations are on the rise.
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