South Korea’s Kospi index fell nearly 8% in Thursday trading, marking another sharp decline for the benchmark as semiconductor shares faced heavy selling pressure.
The drop was driven by a broad-based retreat in technology stocks, with investor sentiment souring amid fresh concerns regarding excess capacity in the chip sector and the long-term sustainability of artificial intelligence demand.
The sell-off represents a continuation of the severe volatility that has plagued Korean equities in recent weeks.
The index had previously recorded one of its steepest single-day declines in early trading on Wednesday, before plunging below the 8,000 level on Friday.
The current move underscores the fragility of the market’s recovery, as traders remain wary of potential overcapacity risks that could dampen profit margins for major chipmakers.
Concerns over the durability of AI-driven growth are increasingly weighing on the sector.