EL7.AI
StocksMedium•28 July 2026•
1 min read

KOSPI Plunges 10% on AI Tech Sell-off; Ford and GM Vie for Pentagon Contract

Key Facts

1South Korea's KOSPI index plunged approximately 10%, driven by heavy losses in Samsung Electronics and SK Hynix due to AI investment concerns.
2Ford and GM are competing for a major Pentagon tactical truck contract, with prototypes due for testing and first deliveries expected by March 2027.

In a move reflecting growing anxiety over the sustainability of the AI boom, Asian markets underwent a broad re-rating of the technology sector. South Korea's KOSPI index plunged approximately 10%, driven by heavy losses in industry leaders Samsung Electronics and SK Hynix. According to reports, the sell-off was triggered by investor skepticism regarding returns on AI investments and mounting competition from Chinese firms.

Outside of the tech sector volatility, a significant industrial competition is unfolding in the US as Ford and GM vie for a major Pentagon contract to supply tactical trucks. Per market data, Ford (F) shares stood at 14.68 (July 27, 2026). The contract involves the development of prototypes for testing and evaluation, with the first fleet deliveries expected to commence by March 2027.

Investors are closely monitoring price levels following the retreat, with the KOSPI proxy (BC94.L) at 3798 (July 28, 2026) and Ford at 14.68 (July 27, 2026). In the absence of immediate upcoming economic catalysts in the calendar, market focus remains on the operational assessments of military prototypes and broader sentiment shifts in the semiconductor space. Recent data showed South Korea's GDP grew at 3.7% annually as of July 22, 2026.