Seoul: Seoul stocks tumbled by more than 3 percent Monday as investors sold off tech-heavyweights on persisting geopolitical uncertainties and warnings from U.S. tech executives that the pace of artificial intelligence (AI) development may be too fast. The Korean won fell against the U.S. dollar. After opening sharply lower, the benchmark Korea Composite Stock Price Index (KOSPI) closed down 225.54 points, or 3.26 percent, to 6,684.37.

According to Yonhap News Agency, the main factor that led the sharp decline was the controversy over the pace of AI development. Lee Kyoung-min, an analyst from Daishin Securities, noted that an anticipated meeting expected to reopen transit in the Hormuz Strait was postponed, leading Brent crude, the international oil benchmark, to hover above US$108 per barrel, further cooling investor sentiment.

Over the weekend, Anthropic's co-founder Dario Amodei issued a proposal to slow down the advancement of AI technology to ensure public safety. This proposal followed a rare show of unity from other AI executives from the United States, contributing to the overall cautious atmosphere in the market.