South Korea Sweats Record Heat Amid AI-Driven Market Turmoil

South Korea sweltered under record-breaking heat on Wednesday, with temperatures reaching all-time highs in the southeastern city of Busan. The mercury soared to 40.3 degrees Celsius at 3:34 pm in Yangsan, marking the highest temperature since the Korea Meteorological Administration began collecting data in 2008.

Meanwhile, investors dumped semiconductor stocks, sending Seoul shares plummeting nearly 6% due to skepticism over whether massive spending on artificial intelligence (AI) will generate sufficient returns. The local currency strengthened against the US dollar as a result.

The South Korean won also reached its strongest level in nearly five months, trading at 1,446.7 per dollar at 3:30 pm. This represents an increase of 15.8 won from the previous day.