KOSPI Slides >5% Amid Tech Rout

KOSPI Slides >5% Amid Tech Rout

On Monday the South Korean benchmark KOSPI index plunged more than 5%, reaching a low of approximately 5.2% intraday before a temporary trading curb was imposed. The sharp decline triggered a brief halt in trading as market participants reacted to a broad sell‑off in heavyweight technology stocks.

The rout was led by the country’s largest technology firms. Samsung Electronics Co Ltd fell over 6% after its preliminary earnings failed to reassure investors about the profitability of memory‑chip operations amid massive AI‑related capital spending. SK Hynix Inc dropped nearly 10%, trading at 1,964,000 won, while LG Innotek Co Ltd slid more than 8%.

The sell‑off spread across the Asian semiconductor supply chain. In Japan, Kioxia Holdings Corp declined almost 9%, Murata Manufacturing Co lost nearly 6%, and TDK Corp fell about 5%. By contrast, Taiwan’s Taiwan Semiconductor Manufacturing Co and Foxconn Technology Co Ltd were comparatively resilient, trading little changed despite the broader regional tech weakness.

These moves extend a volatile period for Asian technology equities, reflecting renewed concerns over AI valuations and the ability of semiconductor earnings to keep pace with the rapid expansion of AI infrastructure spending.