South Korea’s benchmark Kospi index extended its losses late Tuesday morning, driven by a sharp sell-off in major chip stocks.
The decline tracked an overnight slump in U.S. technology shares, with Seoul’s tech-heavy market absorbing the pressure as investors reassessed near-term demand outlooks for semiconductors.
The selloff reflects growing anxiety over the sustainability of AI-driven chip demand.
While the sector has benefited from a multi-year investment cycle, recent price action suggests traders are becoming more sensitive to any signs of softening momentum or valuation overextension in leading names.
This market move comes against a backdrop of weakening industrial data.
South Korea's industrial production contracted in May, driven primarily by a reduction in semiconductor manufacturing volumes.