South Korea’s Kospi index staged a sharp reversal from record levels on Tuesday, driven by aggressive profit-taking in the technology sector.
The sell-off was particularly severe in Seoul, where the benchmark extended its losses late in the morning session.
The decline tracked an overnight slump in U.S. technology shares, with Seoul’s tech-heavy market reacting to the broader regional risk-off sentiment.
Major chip stocks led the downturn, amplifying the index's drop as investors locked in gains after the recent rally.
Asian equity markets broadly staged a reversal from record highs, but the impact was most acute in South Korea due to its heavy weighting in semiconductor names.
The move reflects a shift in sentiment as traders digest the extent of the recent rally and reassess near-term valuations.