South Korea’s KOSPI halts trade after 8% wipeout on AI losses

 South Korea’s KOSPI stock index plummeted 8% at the open on Friday, triggering a 20 minute trading halt as markets grappled with a prolonged, deepening rout in artificial intelligence stocks. 

The KOSPI opened down 8.55% at 4,923.47 points, immediately triggering a 20-minute trading halt. It marked the tenth time this year that South Korea’s bourse operator activated a circuit breaker for local markets. 

Friday’s losses put the KOSPI at a nine-month low, with the index slated to wipe out over 19% from an intraday peak hit in late-October. It has now wiped out nearly 48% from a record high hit in June. 

The index was battered chiefly by a prolonged rout in chipmaking and AI-exposed names, which slumped tracking an overnight wipeout on Wall Street.

The Philadelphia Semiconductor Index slumped 12.3%, while the NASDAQ Composite tumbled 5.5% in its worst session since April 2025. 

Tech was battered by growing fears of increased regulatory scrutiny towards AI and data center construction in the U.S., after the Democrats won majorities in both chambers of Congress this week. 

Memory chip giant Samsung Electronics Co Ltd (KS:005930) tumbled 10%, while rival SK Hynix Inc (KS:000660) slid 11.7%. The two were by far the biggest driver of the KOSPI’s AI-driven rally this year, and were the worst hit by unwinding tech valuations. 

The two are major suppliers to the AI buildout, and are exposed to any potential slowdown in construction. Samsung and SK Hynix are also subject to heavily leveraged bets on the long-term AI trade, through several Korean exchange-traded funds, which now appeared to be coming apart.