Seoul: South Korean stocks nosedived more than 8 percent Monday, extending their losing streak to a third consecutive session, as investors dumped market heavyweights on renewed woes over artificial intelligence (AI) profitability and concerns over a possible hawkish pivot of the US Federal Reserve.

According to Qatar News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) plunged 676.18 points, or 8.29 percent, to close at 7,484.41, after hitting a low of 7,442.73. The Korea Exchange (KRX) activated a circuit breaker for the KOSPI about three minutes after opening, halting trading for 20 minutes, and implemented a consecutive sell-side sidecar.

The KRX also issued a sell-side sidecar for the secondary KOSDAQ market about six minutes after opening, suspending trading for five minutes, and later activated a circuit breaker for the index after the KOSDAQ fell by more than eight percent.

In the currency market, the South Korean won strengthened against the US dollar, closing at 1,535.0 won per dollar, up 4.1 won from the previous session. The won had opened at 1,555.2 won per dollar, marking its lowest level since March 6, 2009, during the height of the global financial crisis.