South Korea's KOSPI stock index plunges more than 8% in new tech rout

South Korea’s benchmark KOSPI plunged more than 8% as investors dumped technology and semiconductor stocks, extending a broader risk-off move across global markets. Trading on the index was briefly halted after the drop triggered a circuit breaker.

The selloff was led by heavyweight chip names that weigh heavily on the KOSPI, with losses particularly sharp in major memory and electronics stocks such as Samsung Electronics and SK Hynix. The weakness in South Korea also fed into broader market declines in Asia, where other equity benchmarks fell as investors reassessed tech exposure amid jitters tied to global markets and rates expectations.

The move capped a period in which South Korea’s market had been strongly driven by AI and semiconductors, leaving it more vulnerable when sentiment shifted. As the index sold off and trading was paused under the circuit breaker rules, market attention turned to whether the selloff would continue or stabilize once trading resumed.