Overview
- The benchmark KOSPI fell about 5.6 percent intraday to 8,429.14, and the Korea Exchange activated a sell-side 'sidecar' that halted program trading for five minutes when futures plunged past the trigger.
- Major technology and chip stocks led the drop with Samsung Electronics down roughly 6.6 percent and SK hynix off about 7.2 percent as investors realised gains after large prior-day moves.
- Market participants cited profit-taking after the KOSPI jumped 5.42 percent the previous session, plus concerns that AI-driven valuations were stretched and could be hurt by slower earnings.
- U.S. consumer prices rising faster than expected in May raised market bets that the Federal Reserve may keep rates higher for longer, which reduced appetite for high-growth stocks and intensified selling.
- Foreign and institutional outflows weakened the Korean won to about 1,548 per dollar and magnified the market swing, underscoring how concentrated gains in a few large caps and program trading rules can amplify short-term volatility.