Won Slides to 1,476 as Foreigners Dump Stocks Amid AI Bubble Fears

The won weakened against the dollar in early trading Wednesday as foreign investors sold off stocks and risk aversion intensified following concerns about an artificial intelligence bubble.

The won traded at 1,476.9 per dollar as of 9:20 a.m. in Seoul, up 3.2 won from the previous day's close. The currency opened at 1,476.0, up 2.3 won.

The won's decline came after Broadcom, the U.S. semiconductor company, issued a cautious outlook on the AI industry on Jan. 12, heightening risk-off sentiment in global markets. The KOSPI index also fell more than 2 percent as foreign investors sold heavily right after the market opened, reflecting the ongoing fallout from AI bubble concerns.

As the exchange rate threatened to breach the 1,480 level, Deputy Prime Minister and Finance Minister Koo Yun-cheol convened an emergency meeting with economic ministers Tuesday to review financial and foreign exchange market conditions and discuss response measures.