South Korea’s KOSPI Halts Trading as Tech Selloff Triggers Circuit Breaker
South Korea's KOSPI index triggers a circuit breaker following an 8% plunge. Tech giants Samsung and SK Hynix lead the decline amid global market fears.
POLICY WIRE — Seoul, South Korea — South Korea’s benchmark KOSPI index plummeted by 8% on Thursday, forcing a temporary halt in trading as a massive selloff swept through the technology sector.
The market-wide circuit breaker was activated for the first time in two and a half months as the index dropped to 5,528.05, marking its lowest level since July 29. The decline was fueled by a broader global retreat in semiconductor stocks, with major industry players Samsung Electronics and SK Hynix bearing the brunt of the losses.
Investors are currently grappling with a confluence of negative pressures, including concerns over AI infrastructure financing, elevated semiconductor valuations, and intensifying competition from Chinese memory-chip manufacturers. The downturn was further exacerbated by persistent U.S. inflation data, which has reignited market anxieties regarding potential interest rate hikes.
The volatility in Seoul mirrors a wider trend across Asian markets, where traders have aggressively exited positions in previously high-performing chipmakers. The market remains on edge as participants assess the impact of the global tech rout and the implications of recent developments, such as the IPO of China’s CXMT.
Reporting by Policy-Wire (PW)
