South Korea’s benchmark Kospi index fell more than 5% on Monday, marking its lowest level in nearly two months as investors questioned the sustainability of the artificial intelligence rally.
The broad-based selloff was concentrated in the technology sector, with memory chipmakers leading the decline amid growing concerns over demand durability and valuation levels.
The sharp drop follows a volatile week for the market, which saw the Kospi plummet as much as 8% on Thursday in what was the steepest single-day decline in the region’s AI-driven rally to date.
SK Hynix and Samsung Electronics were among the hardest hit, dragging down the index and triggering trading curbs on the exchange.
The sharp drop follows a volatile week for the market, which saw the Kospi plummet as much as 8% on Thursday in what was the steepest single-day decline in the region’s AI-driven rally to date.
The continued selling pressure suggests that market participants are reassessing the near-term outlook for semiconductor stocks after a prolonged period of strength.
The selloff in Seoul mirrors broader weakness in global technology shares, with US tech stocks also facing headwinds.