South Korean Stocks Extend Declines on Technology Weakness

South Korean equities fell sharply on Friday, with the benchmark KOSPI sliding more than 3% to around 4,995, extending losses below the 5,000 level as weakness in U.S. technology stocks weighed heavily on the country’s semiconductor-heavy market.

The selloff followed an overnight decline on Wall Street, driven by growing concerns that excessive capital expenditure tied to artificial intelligence could pressure profitability and valuations across major global technology firms.

Korea’s semiconductor sector bore the brunt of the downturn. Shares of Samsung Electronics and SK Hynix both dropped more than 3%, dragging the broader index lower amid heavy selling by foreign investors.

Losses were further amplified by program-driven trading, with a sell-side “sidecar” mechanism briefly triggered in KOSPI 200 futures during early trading, adding to market volatility.

The weakness spread across sectors, with notable declines in Hyundai Motor (-5.1%), LG Energy Solution (-3.7%), SK Square (-6.2%), Hanwha Aerospace (-6.1%) and HD Hyundai Heavy Industries (-4.4%), underscoring the broad-based nature of the market retreat.