South Korea's KOSPI drops 4% as Samsung, SK Hynix lead tech sell-off

South Korea's KOSPI plunged over 4%, with Samsung Electronics and SK Hynix leading losses as semiconductor stocks tracked a sell-off in US technology shares. Concerns over tighter AI regulations and a potential slowdown in investment weighed on sentiment, triggering a sidecar trading curb after the index fell over 5%. The KOSPI declined 227.68 points to 5,459.70, with Samsung Electronics falling 5.73% and SK Hynix losing 7.52%. The drop followed a 3.1% decline in the Philadelphia Semiconductor Index on Wednesday, while foreign investors were net sellers of 1.3 trillion won ($969.07 million). The sell-off occurred despite a strong Wall Street rally after Democrats' midterm election victory eased political uncertainty. Battery stocks also retreated, with LG Energy Solution down 2.82%, while Hyundai Motor gained 3.70% and Kia Corp advanced 4.38%. The won weakened slightly to 1,341.7 per dollar.