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 was broad-based across the technology sector, which had led the market to record levels earlier in the year.
The current decline follows a severe crash earlier in the week, when the Kospi plummeted nearly 10% on Tuesday, triggering a 20-minute trading halt.
The Korean won strengthened against the US dollar during the session, reflecting a reversal of capital flows as domestic investors repatriated funds or reduced exposure to foreign assets.
This currency move underscores the broader risk-off sentiment gripping Asian equity markets, which have staged a significant pullback from their recent peaks.
The current decline follows a severe crash earlier in the week, when the Kospi plummeted nearly 10% on Tuesday, triggering a 20-minute trading halt.
That earlier session saw a massive liquidation of technology holdings, signaling that the AI-led bull run had reached a point of exhaustion for many market participants.