South Korea’s benchmark Kospi index tumbled nearly 6% on Friday, marking a second consecutive day of sharp declines as investors aggressively locked in profits following a prolonged rally driven by artificial intelligence stocks.
The sell-off was broad-based, with technology names leading the decline as traders unwound positions accumulated during the recent AI-driven surge.
Earlier on Tuesday, the Kospi crashed nearly 10%, triggering a 20-minute trading halt as a massive sell-off engulfed the technology sector.
The market move follows a turbulent week for Korean equities.
Earlier on Tuesday, the Kospi crashed nearly 10%, triggering a 20-minute trading halt as a massive sell-off engulfed the technology sector.
That sharp decline extended the index's drop from recent record highs, signaling a potential reversal in the momentum that had carried the market higher.
The rapid correction highlights the fragility of the AI-led rally, which had become increasingly concentrated in a narrow set of technology stocks.