South Korea’s benchmark index plunged 8.19% intraday, triggering circuit breakers as chipmakers led a $3.4 billion capital exodus.
South Korea’s KOSPI index triggered its second trading halt in a week after an 8.19% intraday drop, driven by a selloff in AI chip stocks. The Korea Exchange suspended trading for 20 minutes Friday when the index fell 731.97 points to 8,198.33, marking its fifth circuit breaker of 2026.
Samsung Electronics and SK Hynix, which make up nearly half the index’s market cap, dropped 5.30% and 8.36%, respectively. Foreign investors dumped a net 4.62 trillion won ($3.4 billion) in equities, while institutional outflows reached 3.78 trillion won. The KOSPI closed at 8,411.21, down 5.81%.
The rout rippled through global markets, dragging down Wall Street, Tokyo, and SoftBank shares. Analysts cited AI chip exposure as the primary risk factor for equities worldwide.