South Korean Stocks Plunge 10%, Triggering Circuit Breakers Amid Asian Market Sell-off

South Korean stocks suffered a major decline today, dragged down by a sell-off in the technology sector. The sharp drop triggered circuit breakers, forcing a 20-minute trading halt. The Kospi index closed down 10%, leading a broader decline across Asian markets as concerns over the sustainability of the artificial intelligence-driven rally intensified, mirroring trends on Wall Street.

Asian tech stocks faced heavy pressure, with major South Korean chipmakers SK hynix and Samsung both falling by more than 12%. Hyundai Research Institute official Joo Won noted that the downturn reflects an overextension in semiconductor valuations, prompting institutional investors to reduce their exposure. Analysts suggest that investors are currently pivoting toward profit-taking and re-evaluating market risks.

Elsewhere, Japanese markets fell over 3%, pressured by significant drops in SoftBank and Tokyo Electron. Markets in Hong Kong, Shanghai, and Taipei also experienced declines exceeding 1%. Meanwhile, the Japanese yen hovered near 40-year lows against the U.S. dollar, though it showed slight recovery following reports of discussions between Japanese and U.S. financial authorities regarding exchange rate stability.