South Korea's benchmark KOSPI index reversed course late Wednesday morning, wiping out early gains as selling pressure mounted in the technology sector.
The index had opened 1.09 percent higher before turning lower, reflecting a sharp shift in investor sentiment toward domestic tech equities.
The reversal was driven by concerns over the sustainability of future artificial intelligence (AI) spending.
Investors moved to reduce exposure to technology stocks, weighing heavily on the broader market performance.
This marks a continuation of recent volatility in the sector, following sessions earlier in the week where the index also erased early gains to close lower.
The selling pressure comes as markets reassess the growth trajectory for AI-related hardware and services.