South Korea’s equity market suffered a severe reversal on Tuesday, with the KOSPI index crashing nearly 10% and triggering circuit breakers as selling pressure engulfed the technology sector.
The benchmark extended its decline from record highs, marking one of the sharpest single-day drops in recent memory and signaling a abrupt end to the prolonged rally that had been fueled by surging demand for semiconductors.
The sell-off was driven by growing investor anxiety that the market had become overextended, with fears mounting that a bubble could burst.
Two key technology firms, which had been central to the market’s previous gains, saw their stocks tumble as traders questioned whether the momentum could be sustained.
The abrupt downturn has prompted market observers to question whether the move marks a temporary correction or the beginning of a more significant repricing of risk in the region.
The volatility in Seoul has raised concerns about potential spillover effects to other markets, particularly among US-listed Korean peers and global semiconductor suppliers.