KOSPI index drops 6% as semiconductor sector faces AI-driven valuation correction

The South Korean equity market experienced a sharp decline driven by a sell-off in major semiconductor stocks amid growing investor skepticism regarding the immediate profitability of AI infrastructure investments. This correction reflects a broader reassessment of the AI-led growth narrative that has dominated global tech valuations. It remains uncertain whether this represents a temporary technical adjustment or a sustained shift in market sentiment toward high-growth tech assets.