South Korea’s benchmark KOSPI tumbled more than 8% on Tuesday, triggering market-wide circuit breakers for the sixth time this year as investors rushed to lock in profits from artificial intelligence-linked chip stocks despite strong earnings guidance from Samsung Electronics.
The index fell 646.85 points, or 8.03%, to 7,404.48, prompting a 20-minute trading halt after circuit breakers were activated. It marked the 12th such trading suspension in the market’s history.
The sharp decline was led by semiconductor heavyweights, with Samsung Electronics dropping 9.75% even after forecasting a 19-fold jump in second-quarter operating profit. Rival SK Hynix fell 10.58%, extending a broader sell-off across regional chipmakers.
Analysts said investors had already priced in the strong earnings outlook and were increasingly concerned over whether the artificial intelligence-driven boom could be sustained.
Among other major stocks, LG Energy Solution slid 8.74% after warning that second-quarter operating profit is expected to plunge 77% due to weaker electric vehicle battery demand. Shipbuilder Hanwha Ocean plunged 24.29% after Canada selected German submarines over South Korean bids in a major defence contract.
Foreign investors were net sellers of shares worth 3.3 trillion won, equivalent to about US$2.16 billion, adding pressure on the market.
Despite Tuesday’s steep losses, the KOSPI remains up 76% since the start of the year, driven largely by the strong rally in semiconductor stocks.
