South Korea's KOSPI plunges 10% as chip stocks trigger trading halt
Why it matters: Samsung and SK Hynix now make up more than half the index, magnifying losses as AI-driven bets unwind.
South Korea's benchmark KOSPI tumbled 10% on Tuesday, its biggest one-day drop since March 4, as a tech sell-off spread from Wall Street into Asia and hammered the country's biggest chip stocks. The index closed down 910.71 points at 8,203.84 after Samsung Electronics and SK Hynix each fell more than 12%, triggering a 20-minute marketwide trading halt in the afternoon. Japan's Nikkei 225 also dropped 3.55%. The slide came a day after the KOSPI crossed 9,100 for the first time, lifted by an AI-fueled rally in chipmakers. Regulators have warned retail investors about leverage as margin debt hit a record high in June, and the head of South Korea's market watchdog said approval of leveraged funds tied to chip shares had been rushed.