Emerging-market stocks resumed their slide, snapping a two-day rally, as SK Hynix Inc. and Samsung Electronics Co. tumbled after South Korean authorities moved to rein in leveraged funds tracking the chipmakers.

The regulatory action targets speculative vehicles that amplify exposure to the country's semiconductor giants, which dominate global memory-chip supply. Officials cited concerns over excessive volatility and retail investor losses linked to these products. The move triggered immediate profit-taking in both heavyweight names, dragging the Kospi lower and spilling over into broader emerging-market indices.

Market participants noted that the curbs reflect Seoul's heightened sensitivity to financial stability risks amid uncertain global demand for semiconductors. While the restrictions apply specifically to leveraged exchange-traded funds and similar instruments, the signal of regulatory vigilance weighed on sentiment across the technology sector.

Analysts suggest the selloff may be short-lived if underlying fundamentals for memory chips remain supportive, but the episode underscores the fragility of concentrated retail participation in key index components.