South Korea’s benchmark Kospi index opened significantly lower on Monday, marking a steep reversal after a record-breaking rally in the previous session.
Investors moved aggressively to lock in profits, capping a period of exceptional market strength with a sharp pullback at the open.
The sell-off reflects a classic technical correction following an extended run-up.
After the index hit unprecedented highs, traders and institutional investors alike chose to secure returns rather than chase further upside.
The volume of profit-taking was substantial enough to drive the index down sharply from the opening bell, signaling a shift in sentiment from greed to caution.
This volatility underscores the fragility of markets after parabolic moves.