South Korea’s technology sector faced renewed selling pressure on Wednesday, with chipmakers leading the decline as investor sentiment around artificial intelligence cooled.
The downturn follows a sharp reversal in the Kospi index earlier in the week, which had staged a dramatic pullback from record highs amid aggressive profit-taking in the tech-heavy benchmark.
The latest slide was triggered by reports regarding Meta’s strategic plans, which appear to have dampened enthusiasm for the supply chain beneficiaries of the AI boom.
Market participants are increasingly questioning the sustainability of the valuation multiples that have supported the sector’s recent outperformance.
The sell-off underscores the fragility of the rally, which has been heavily concentrated in a narrow group of semiconductor exporters.
This development marks a continuation of the volatility that has characterized South Korean equities in recent sessions.