Kospi falls 7% as South Korean chip stocks slump, $815 million in crypto liquidated

South Korea’s main stock market index, the Kospi, recorded a sharp fall of 7.4% on Tuesday, closing at 5,914.35. The sell-off reflected mounting investor concerns over the sustainability of the AI-driven rally that has dominated global risk assets in recent months. Major technology companies led the drop in Seoul, with Samsung Electronics losing 7.7% and SK Hynix falling 8.8%. These companies represent two of the world’s largest memory chip producers and have been central to the Kospi’s performance throughout the year.