South Korea's Kospi plunged Friday, triggering a temporary trading halt as the AI chip selloff hit Samsung Electronics and SK Hynix. The move turned Seoul into the clearest stress point in the global technology rout.
The drop was not isolated. Japan's Nikkei, Taiwan's Taiex and Hong Kong's Hang Seng also fell as investors questioned whether the AI hardware boom has run too far, too fast.
What happened
Business Insider reported the Kospi fell 5.8% after earlier plunging more than 8% and triggering a circuit breaker for the second time in a week. SK Hynix dropped 8.4%, while Samsung Electronics fell 5.3%.
Barron's linked the move to fears that rising memory-chip prices could eventually hurt end demand. That worry intensified after Apple and Microsoft announced price increases on consumer devices.
Why Kospi trading halt matters
South Korea is one of the world's most concentrated AI memory markets. When SK Hynix and Samsung fall hard enough to trip market-wide controls, global investors pay attention.
The halt also shows how quickly a winning trade can become crowded. Chip earnings may be strong, but equity prices can still fall if investors decide the good news is fully priced.
Market impact
The Kospi slide pulled down broader Asian markets. AP reported Tokyo's Nikkei 225 fell 4.2%, while European markets opened lower and U.S. futures were mixed to weaker.
For U.S. investors, the read-through hits Nvidia suppliers, memory producers, semiconductor equipment makers and ETFs tied to global chip exposure.
Key numbers
- Kospi fell 5.8% on June 26 after earlier dropping more than 8%, according to Business Insider.
- SK Hynix fell 8.4% and Samsung Electronics fell 5.3% in the same report.
- The Star, citing AFP, said the plunge sparked a 20-minute trading halt.