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Financial Times
Tech sell-off widens as South Korea index plunges
The tech sell-off in Asia intensified, particularly affecting South Korea, where the Kospi index dropped more than 8%, leading to a trading halt. Major chipmakers like Samsung and SK Hynix saw their shares dive over 10% following the Nasdaq's decline, raising concerns about valuation bubbles amidst enthusiasm for AI technologies. To combat rising volatility, the Korea Exchange held an emergency meeting while South Korea's government introduced measures to stabilize its currency, which has weakened significantly as foreign investors offloaded shares.
MonitorConfidence: HighShort term horizon
Published 8 Jun 2026, 02:40 UTC2 min read
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Summary
TL;DR
- Kospi index fell over 8%, leading to a trading pause.
- Samsung and SK Hynix shares dropped more than 10%.
- Nikkei 225 and Topix indexes also fell significantly.
- Emergency measures announced by the Korea Exchange.
- Foreign investors sold $10bn net in Korean shares last week.
Interesting facts
- The Kospi had previously doubled in value this year.
- The market saw a spike in trading activity just before the sell-off.
- Analysts note the structural nature of the ongoing memory supply shortage.