The trading platforms in South Korea are experiencing a wave of panic, leading to a record decline in the local KOSPI index, which has fallen by more than 12% — the steepest drop since the fall of 2008.

According to reports, the Korean stock market, which previously showed the best performance in the world over the past year, has plummeted for the second consecutive day. The KOSPI index, which had previously surged by 50% due to the AI boom, opened at 6165.15 points on March 3 but fell to 5090.79 points by the close on March 4, according to data from Investing.

The euphoria driven by advancements in AI is gradually dissipating. Experts note that forced liquidation of leveraged deals may exacerbate losses. Investors, they say, are reassessing their overheated assets in light of the situation with Iran blocking the Strait of Hormuz, which is leading to rising oil prices.

Seoul ranks eighth in the world for oil consumption and is one of the major buyers of hydrocarbons that pass through the Strait of Hormuz. Amid news from the Middle East, many global exchanges, including Asian markets, have also experienced significant declines.