South Korea’s benchmark Kospi index closed more than 2% lower on Wednesday, marking a continuation of the sharp retreat from risk assets that began earlier in the week.
The sell-off was broad-based but particularly severe in the technology sector, where investors locked in profits following recent rallies fueled by artificial intelligence optimism.
The index had already fallen approximately 2% late Monday morning as tensions escalated, and Wednesday’s close confirmed that selling pressure persisted through the session.
The market move reflects growing caution as traders weigh the uncertainty surrounding a potential Iran nuclear deal against the momentum of the tech sector.
Yonhap reported that the decline was driven by a combination of profit-taking in high-flying AI stocks and broader geopolitical anxieties.
The index had already fallen approximately 2% late Monday morning as tensions escalated, and Wednesday’s close confirmed that selling pressure persisted through the session.
This repricing highlights the vulnerability of markets heavily exposed to both geopolitical shocks and concentrated sector bets.