SEOUL, Nov. 3 (Yonhap) -- South Korean stocks plunged more than 3 percent Tuesday, driven by heavy tech sell-offs amid escalating woes about massive artificial intelligence (AI) spending. The Korean won was trading higher against the U.S. dollar.
After opening 2.46 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) extended losses to close at 5,648.79, down 210.29 points, or 3.59 percent.
Overnight on Wall Street, tech and AI-related shares remained shaky, dragging down the Nasdaq Composite by 1.07 percent and the S&P 500 by 0.51 percent.
The PHLX chip index fell 3.4 percent, following a 7.2 percent plunge Friday.
Investors doubted the productivity and profitability from excessive spending on AI infrastructure, given some global tech companies' recent disappointing earnings reports.
They also remained cautious ahead of the start of voting in the U.S. midterm elections, where President Donald Trump's Republican Party is facing an uphill challenge to keep its majority in Congress.
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