AI Sentiment Triggers Massive Sell-Off in South Korean Stock Market

South Korea's stock market witnessed a sharp sell-off on Friday as changing sentiment in the global artificial intelligence (AI) sector triggered panic among investors. The benchmark KOSPI index plunged more than 8%, forcing the Korea Exchange to temporarily suspend trading for 20 minutes after heavy selling pressure. Notably, this marked the second trading halt in the same week. The steep decline was largely driven by a sharp fall in the shares of semiconductor giants Samsung Electronics and SK Hynix, both of which together account for a significant portion of the benchmark index. Foreign investors reportedly sold shares worth billions during the morning session, intensifying the market's decline.

Market sentiment was further affected by reports of memory chip shortages, Apple's decision to raise product prices due to higher component costs, and speculation that OpenAI may postpone its planned IPO until next year. These developments raised fresh concerns over the sustainability of the AI-driven semiconductor boom. Although reports suggest Samsung Electronics and SK Hynix could announce major investment plans next week, analysts believe investor caution remains high. Despite strong demand for memory chips, broader global uncertainties continue to weigh heavily on the technology sector and the South Korean equity market.