South Korea’s benchmark KOSPI index plunged nearly 10% on Tuesday, triggering circuit breakers as a wave of selling swept through the market.
The decline was driven primarily by foreign investors liquidating positions in major semiconductor shares and other market heavyweights.
The benchmark extended its decline from recent record highs, marking one of the sharpest single-day reversals in the index's history.
The sell-off was concentrated in the technology sector, which has been a primary driver of the index's recent performance.
Foreign capital outflows accelerated the downturn, with institutional investors reducing exposure to high-beta tech names amid broader risk aversion.
The severity of the drop forced trading halts as the index breached key volatility thresholds.