KOSPI plunges 8% as AI fears trigger South Korea trading halt

South Korea's stock exchange halted KOSPI trading Friday after the index plunged over 8% within minutes of the opening bell, triggering a 20-minute circuit breaker amid AI investment concerns. The index fell to 4,924.61 before recovering to 5,144.31, still down 4.45%. The selloff extended Thursday's 5.28% decline, driven by Wall Street's tech crash where Nasdaq fell 5.52% and the Philadelphia Semiconductor Index dropped 12.25%. Samsung Electronics and SK Hynix, comprising nearly half of KOSPI's market value, initially fell about 10% and 13% respectively before paring losses. Foreign investors sold nearly 1 trillion won by late morning, following 3.44 trillion won in outflows Thursday. Analysts called the reaction excessive, noting no confirmed demand collapse, though US regulatory uncertainty over data center projects and high valuations fueled the panic.