South Korea’s benchmark KOSPI index erased early gains to trade lower on Tuesday, closing out a session defined by volatility in the technology sector.
The index fell 35.40 points, or 0.38%, to settle at 8,362.96.
The reversal came as investors digested persistent uncertainty surrounding artificial intelligence spending and semiconductor demand, which continued to weigh on the tech-heavy market.
The decline in Seoul tracked broader weakness in global technology shares, with overnight losses in U.S. markets providing a headwind for Asian openers.
Major chip stocks led the selling pressure, dragging the index lower despite initial buying interest in the morning session.
The move reflects ongoing caution among traders regarding the sustainability of the AI investment cycle and its impact on hardware suppliers.