South Korea’s benchmark Kospi index fell sharply, sliding approximately 6% as a broad sell-off in major semiconductor stocks weighed heavily on the market.
The decline marks a continuation of recent volatility, with the index extending losses from the previous session as investor sentiment cooled across the tech-heavy exchange.
The sharp drop tracked an overnight slump in U.S. technology shares, highlighting the persistent linkage between Seoul’s market and global tech sentiment.
Major chipmakers, which have been central to the index’s recent performance, faced aggressive selling pressure as traders locked in profits following a prolonged rally driven by artificial intelligence optimism.
This move represents the second consecutive day of significant declines for the Kospi, underscoring the fragility of the recent uptrend.
The sell-off reflects a broader risk-off posture among investors who are increasingly cautious about valuation levels in the semiconductor sector after months of strong gains.