South Korea's share market losses deepen as leveraged AI bets take a heavy toll

South Korea's benchmark KOSPI fell as much as 4.7% on Tuesday, now down 28% from its June 22 record high, as leveraged retail bets on AI chipmakers unwound and triggered sidecar trading curbs. Citi downgraded Korean equities to tactical neutral from overweight citing heightened volatility, while maintaining a KOSPI target of 10,000 implying about 50% upside. SK Hynix and Samsung Electronics, which together make up over half of the KOSPI, fell nearly 6% each; Hyundai Motor and Kia dropped 7-7.5% on labour unrest, with Gulf tensions lifting oil prices and adding to inflation worries ahead of a heavy week of global tech earnings.