South Korea's Kospi Falls 3.5% as AI Chip Stocks Lead $120B Market Selloff

South Korea's Kospi reportedly plunged 3.5%, wiping approximately 170 trillion won from the country's equity market as investors reduced exposure to semiconductor and AI-related stocks.
SK Hynix fell as much as 5.6%, while Samsung Electronics declined approximately 2.6%, reflecting renewed concerns about the financing and profitability of expanding AI infrastructure.
The selloff occurred despite an overnight technology-led rally on Wall Street, suggesting that regional investors remained cautious about sector valuations and broader market risks.
Rising oil prices and tensions in the Middle East added to concerns about inflation and energy costs. South Korea's semiconductor-heavy market remains particularly sensitive to changes in global technology sentiment.