South Korea’s Kospi index has fallen into a technical bear market, driven by intensifying investor fears that the artificial intelligence investment boom is unraveling.
The benchmark gauge plummeted nearly 10% on Tuesday, a sharp decline that forced a 20-minute trading halt as selling pressure engulfed the technology sector.
The selloff extended beyond Seoul, spreading to broader emerging-market assets and technology-heavy indices globally.
A broad-based retreat in global equities intensified throughout the session, reflecting growing anxiety over valuation risks in the AI sector.
This marks a significant acceleration from recent record highs, with the sharp decline extending the index's drop over the past week.
The volatility underscores the fragility of current market sentiment, where concerns over an AI bubble are translating into tangible capital flight from high-growth tech names.
Investors are now watching for signs of stabilization in Asian markets and whether the contagion will deepen in European and US trading sessions.
The focus remains on whether this is a localized correction in South Korea or the beginning of a broader repricing of AI-related equities worldwide.