South Korea’s benchmark Kospi index fell 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 intensified pressure on the technology sector, which had been the primary engine of the index's recent gains.

The decline follows a severe drop earlier in the week, when the Kospi crashed nearly 10% on Tuesday, triggering a 20-minute trading halt.

Trading volatility remained high as market participants reassessed valuations after the rapid ascent.

The decline follows a severe drop earlier in the week, when the Kospi crashed nearly 10% on Tuesday, triggering a 20-minute trading halt.

That earlier session saw a massive sell-off engulf the technology sector, extending the index's drop from recent record highs.

The consecutive days of heavy losses signal a significant shift in sentiment, with profit-taking overtaking bullish momentum.