South Korean stocks plunge over 11% as tech rout rocks markets

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Seoul: South Korean stocks had their worst trading session in years on Wednesday, with the benchmark KOSPI index falling more than 11% after a sharp decline in technology firms prompted panic in financial markets. The drop was fuelled by severe losses at semiconductor heavyweights SK Hynix and Samsung Electronics following dismal earnings and rekindled concerns that the global AI-driven chip boom is losing steam.

The market collapse worsened as investors rushed to sell technology stocks over concerns about declining demand for advanced processors, increased competition from Chinese manufacturers, and uncertainty about future AI infrastructure expenditure. The sell-off resulted in widespread margin calls and the forced liquidation of stressed positions, increasing losses across the market.

The sharp collapse wiped out billions of dollars in market value and sent shockwaves through Asian markets, driving investors to seek safer assets. South Korean financial officials said they were constantly monitoring market circumstances and were ready to take stabilisation steps if volatility persisted, but analysts cautioned that investor confidence might remain fragile in the short term.