KOREAN STOCKS PLUNGE 10% FROM RECORD HIGH

The sharp selloff targeted semiconductor heavyweights that had driven the recent market advance. Investors reassessed valuations after the sustained rally, triggering broad-based profit-taking across the sector. The Korea Exchange halted trading for 20 minutes during the decline—a mechanism designed to cool volatile market movements. The pullback marks a significant reversal from the momentum that had carried South Korean equities to record levels. Chip stocks have been central to Korea's stock market gains, reflecting strong global demand for semiconductors. However, the rapid advance raised questions about valuation sustainability among market participants. The 10% decline from peak levels is substantial but not unprecedented during market corrections. Analysts will monitor whether the selloff stabilizes or signals broader weakness in the technology sector that has underpinned recent gains.