South Korea’s Kospi index plunged below the 5,000 mark as fears over US midterm election outcomes and potential AI regulations triggered a global sell-off. Samsung Electronics and SK Hynix dropped over 11% each, dragging the benchmark down 8.8% and forcing a 20-minute trading halt. The rout followed a Nasdaq 100 decline of 6.4% and a $2.3 trillion market value wipeout.
The Kospi, which had surged past 9,000 earlier this year on AI-driven chip demand, is now down 46% from its June peak. Analysts warn of a panic sell phase, with Kim Dojoon of Zian Investment Management noting forced selling across markets. Japan’s Nikkei and Taiwan’s Taiex also neared bear market territory.
The Finance Ministry pledged monitoring and preemptive measures to stabilize the market, as investor confidence wanes amid concerns over AI infrastructure funding and regulatory tightening.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing