KOSPI Circuit Breaker Triggered Again as AI Chip Rout Deepens
The KOSPI triggered its second circuit breaker in a week on Friday, plunging 8.19% intraday before halting for 20 minutes, as the AI chip trade rout intensified. The index closed at 8,411.21, down 5.81%, with Samsung Electronics and SK Hynix falling 5.30% and 8.36% respectively, together accounting for half of the index's weight. Foreign investors sold a net 4.62 trillion won ($3.4 billion), while retail investors bought 8.19 trillion won ($6.0 billion). The selloff was driven by concerns over memory chip demand, pricing tensions between Apple and Micron, and delays in OpenAI's IPO. The Nikkei 225 fell 4.15%, and SoftBank dropped over 12%. The Nasdaq Composite fell 4.6% for the week, with the S&P 500 losing nearly 2%. Analysts note that the KOSPI has become a proxy for AI chip sentiment, with concentration in Samsung and SK Hynix amplifying volatility. Circuit breakers in Seoul are now seen as a leading indicator for global markets.
Key facts
- KOSPI triggered second circuit breaker in a week, intraday drop of 8.19%.
- Samsung and SK Hynix fell 5.3% and 8.36%, halving index weight.
- Foreign investors sold net 4.62 trillion won ($3.4B) in one session.
- Concerns over memory demand and OpenAI IPO delay fueled selloff.
- Nikkei fell 4.15%, Nasdaq lost 4.6% for the week.