South Korea's Kospi index fell more than 4 percent on Thursday, marking a sharp acceleration in selling pressure that has gripped the market for several days.
The decline was driven primarily by heavy losses in technology shares, as investors grew increasingly wary of the profitability timeline for massive artificial intelligence spending.
The local currency strengthened against the dollar during the session, reflecting risk-off flows and capital repatriation tendencies often seen during sharp equity drawdowns in emerging markets.
The sell-off represents a significant deepening of the downturn that began earlier in the week.
South Korea’s benchmark index had already extended losses late Tuesday, driven by a sharp sell-off in major chip stocks that tracked an overnight slump in U.S. technology shares.
On Wednesday, the Kospi dipped more than 1 percent as selling pressure persisted, setting the stage for Thursday's more severe correction.