South Korea’s Kospi index plunged 6% after briefly surpassing the 8,000 level, as investors rapidly sold AI-driven technology shares following months of strong gains. The sharp decline marked one of the index’s steepest pullbacks this year and reflected growing concerns over stretched valuations in semiconductor and artificial intelligence-related stocks.
Technology companies had led the Kospi’s rally amid rising global demand for AI infrastructure, memory chips, and advanced semiconductor production. However, traders moved to lock in profits as volatility increased across global equity markets and momentum-driven positioning began to unwind.
Analysts said the correction highlights growing sensitivity in Asian technology markets to valuation pressures, interest rate expectations, and shifts in investor sentiment surrounding the global AI trade.
