South Korean equities ended a volatile week sharply lower as a steep selloff in semiconductor and artificial intelligence (AI)-related stocks erased gains made earlier in the week.
The benchmark Kospi began June on a strong note, hitting a fresh record high above 8,700 points on June 1 amid continued optimism over AI-driven chip demand and strong institutional buying.
However, sentiment reversed dramatically toward the end of the week as profit-taking in technology shares, weakness in global semiconductor stocks and uncertainty surrounding geopolitical developments triggered heavy selling pressure.
This resulted in the Kospi plunging more than 5% on June 5 which then prompted a temporary sidecar trading halt after futures markets fell sharply. The index closed at 8,160.59, down 5.54% for the day and approximately 3% for the week.
Technology heavyweights, particularly memory-chip producers, led the decline following a selloff in US semiconductor stocks. Foreign investors were significant net sellers, while the Korean won weakened amid capital outflows and heightened market volatility.
Despite the weekly setback, South Korea remains one of Asia’s strongest-performing equity markets in 2026, supported by robust demand for AI infrastructure and semiconductors.
Investors will be closely watching global technology earnings, foreign fund flows and monetary policy signals for direction in the coming weeks.
