The benchmark KOSPI index slumped nearly 7% to around 6,780 on Thursday, wiping out the previous session’s gains and nearing its lowest level in more than two months, as a global semiconductor selloff battered technology shares. The downturn tracked steep overnight losses in major US chipmakers, which reignited concerns over stretched AI-related valuations and pulled down South Korea’s semiconductor bellwethers, with SK Hynix sinking 11.4% and Samsung Electronics sliding 8.6%.
Selling pressure was broad-based, with notable declines in SK Square (-12.5%), Samsung Electro-Mechanics (-9.1%), Hyundai Motor (-3.5%), and Doosan Enerbility (-3.8%). Market sentiment was further undermined by rising geopolitical risks in the Middle East, after fresh US strikes on Iran intensified worries over energy supply disruptions and dampened risk appetite.
Separately, the Bank of Korea raised its policy rate by 25 basis points to 2.75%, in line with market expectations. The move marks the start of a new tightening cycle aimed at reining in inflation and providing support to the won.
