Kospi index plunged on Monday, triggering circuit-breaker halts as industrial production data worsened, raising fears of a broader market correction. The benchmark index fell 1.2% before midday trading, its steepest decline since 2020, after January manufacturing output dropped 1.3% — a stark reversal from prior monthly gains.

Analysts warn the slump reflects fragile investor confidence, with Barclays' Bum Ki Son noting the rally had been fueled by price gains rather than volume-driven demand. Goldman Sachs' Irene Choi emphasized the drop signals "structural weakness" in a market heavily reliant on semiconductor exports.