South Korea’s Kospi index fell nearly 8% in Thursday trading, marking a second consecutive session of severe losses for the benchmark.
The decline was driven by a broad-based retreat in technology and semiconductor shares, which faced heavy selling pressure as investor sentiment soured amid renewed concerns about the artificial intelligence sector.
The sharp downturn underscores the vulnerability of the market to shifts in tech sentiment, with semiconductor stocks leading the slide.
The sell-off reflects a deepening risk-off posture among investors, who are increasingly cautious about the sustainability of recent gains in the AI-driven tech rally.
The broad-based nature of the decline suggests that the pressure is not isolated to a few names but is affecting the entire technology complex, which constitutes a significant portion of the Kospi's weighting.
This repricing highlights the market's sensitivity to any negative signals regarding demand or valuation in the semiconductor supply chain.