South Korean market slides as investors cash in on chip stocks after US AI slump
South Korean equities fell sharply on Friday as traders sold major semiconductor shares following losses in U.S. AI and chip stocks.
On Friday morning, South Korea's benchmark KOSPI slid 2.44% to 5,398.48, after an opening dip of 2.36%, as investors dumped semiconductor holdings to lock in gains. The sell-off was sparked by overnight losses in U.S. AI-focused and broader tech stocks, including a 2.6% fall in the Nasdaq. Samsung Electronics lost 3.03% while SK hynix declined 0.25% following news that it would suspend plans to list its U.S. subsidiary Solidigm, a move tied to concerns over a holding-company discount.
SK Square, the parent of SK hynix, edged down 0.4% in response. Major U.S. chip makers also fell, with Micron down 6.26%, Nvidia down 4.4% and Intel down 8.04%. The Korean won rose modestly against the dollar, trading at 1,324 won.
Why it matters
The drop highlights how U.S. tech weakness can quickly trigger profit-taking and volatility in South Korea's chip-heavy market.
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