South Korea’s benchmark Kospi index plunged below the 8,000 level on Friday, driven by a broad-based selloff in semiconductor stocks amid growing concerns over the sustainability of artificial intelligence demand.
The decline marked a second consecutive day of sharp losses, with the index falling nearly 6% as investors moved to lock in profits after a prolonged rally fueled by AI optimism.
The selling pressure was exacerbated by overnight losses on Wall Street, particularly in the technology sector, which weighed heavily on Asian markets at the open.
Semiconductor names, which had been the primary beneficiaries of the recent AI-driven bull market, faced the steepest declines as traders reassessed valuation multiples and near-term growth prospects.
This sharp correction follows a period of sustained selling pressure across Asian equities, reflecting a broader shift in sentiment toward risk-off positioning.
The rapid reversal highlights the vulnerability of markets heavily concentrated in cyclical tech sectors when growth narratives face scrutiny.