South Korea’s benchmark Kospi index plunged 8% on Tuesday, triggering a circuit breaker as selling pressure intensified across the market.
The sharp decline was driven primarily by a steep drop in Samsung Electronics shares, reflecting growing investor skepticism regarding the durability of the recent earnings boom fueled by artificial intelligence demand.
The index had already fallen nearly 6% on Friday, marking a second consecutive day of sharp declines as traders aggressively locked in profits following a prolonged rally.
The selloff marks a continuation of the volatility that has plagued South Korean equities in recent sessions.
The index had already fallen nearly 6% on Friday, marking a second consecutive day of sharp declines as traders aggressively locked in profits following a prolonged rally.
The cumulative pressure has pushed the Kospi below the 8,000 level, signaling a significant shift in market sentiment.
Investors are increasingly concerned about the sustainability of AI-driven growth, particularly within the semiconductor sector.