South Korea’s benchmark Kospi index fell sharply by 5.4% on Wednesday, driven by extended losses in the technology sector and a renewed investor reassessment of the artificial intelligence outlook.
The steep decline marks a continuation of severe selling pressure that has gripped Asian markets, following a previous session where the index dropped 5.36% at the open, prompting the Korea Exchange to impose a five-minute trading halt.
The rout in Seoul mirrors broader global equity weakness, with technology stocks bearing the brunt of the selling pressure across international markets.
Wall Street’s tech-heavy indices have struggled to find support in recent sessions, fueling contagion effects that have spilled over into Asian trading hours.
Investors appear to be unwinding positions in high-growth tech names as uncertainty surrounding AI valuations and growth trajectories intensifies.
The sharp move underscores the fragility of the current market regime, where sentiment has shifted rapidly from optimism to caution.