Market Closes Lower Amid Semiconductor Pressure

South Korea’s KOSPI index fell 3.65 percent on Monday, losing 241.69 points to close at 6,384.24. The drop came as major chip manufacturers posted sharp declines, highlighting ongoing volatility in the technology sector.

SK Hynix shares dropped 4.52 percent, while Samsung Electronics lost 4.38 percent. These moves contributed significantly to the index’s decline, given the companies’ large weight in the benchmark.

Chip Stocks Led the Selloff

SK Hynix fell more than 4 percent in earlier sessions, and Samsung Electronics declined nearly 4 percent, with some reports noting drops of 3.2 percent and 1.9 percent respectively in intraday trading. The semiconductor sector bore the brunt of the pressure.

Analysts pointed to concerns that the rapid growth in AI memory demand had created conditions for a bubble in the sector.

Broader Implications for Global Markets

The KOSPI’s latest move followed an earlier decline of 1 percent, with losses widening during the session. The index now sits roughly 31 percent below its June peak, remaining in bear market territory.

Market watchers are monitoring whether the selloff will continue or if buying activity will emerge to stabilize trading. The decline adds to a broader risk signal for global and crypto markets.

Market Value Impact

The KOSPI’s drop wiped out more than ₩162.67 trillion, equivalent to $108 billion in market value. Claims of this magnitude have not been independently confirmed in all reports.

Investor Sentiment and Outlook

Investors remain alert to further losses, with analysts watching for signs of recovery or continued pressure. The concentration of the KOSPI in chip stocks has amplified the impact of sector moves, making the index particularly sensitive to developments in AI memory markets.