Seoul's KOSPI index falls over 3% amid Middle East tensions and AI industry warnings

Seoul's stock market declined sharply due to escalating geopolitical tensions in the Middle East and caution following warnings from U.S. AI executives about rapid AI development. Major technology stocks, including Samsung Electronics and SK hynix, experienced significant losses, while financial shares rose amid expectations of continued monetary tightening. The Korean won weakened against the dollar as oil prices increased.