KOSPI Plunges on Tech Stock Rout, Should Regional Markets Be on Alert?

Technology stocks in Asia experienced another wave of selling on Wednesday (29/7/2026), with South Korea’s KOSPI index plunging after a rout in semiconductor shares. The decline followed a weak session on Wall Street and saw SK Hynix shares crash more than 15%, despite the memory chip giant having just reported its highest-ever quarterly profit. Samsung Electronics also tumbled over 8%, while LG Innotek fell 15% and Seoul Semiconductor dropped 10%. The KOSPI benchmark triggered circuit breakers for the second consecutive day, with its two-day loss exceeding 18%.

The sell-off extended to the United States and Japan. Intel fell nearly 6% and AMD slumped 8%, while memory-related stocks such as Micron and Seagate also declined sharply. In Japan, SoftBank Group came under pressure amid the broader tech weakness.

Kieron Poon, director of equity investments for Asia at Aberdeen Investments, said the sell-off in South Korea reflects ongoing deleveraging and weakening sentiment towards global technology stocks. However, he noted that the sharp correction is making valuations more attractive for quality companies. David Riedel, founder and president of Riedel Research Group, added that the pullback in chip stocks linked to artificial intelligence represents investors taking some of the euphoria out of the AI trade. Owen Lamont, senior vice president at Acadian Asset Management, highlighted that the extreme volatility in SK Hynix shares reflects significant uncertainty about the AI investment cycle, suggesting that leveraged positioning may have amplified the market swings.