Korean stocks slide as chipmakers tumble

South Korean stocks declined sharply as major chipmakers fell, pulling the broader market lower. The Kospi index slid as much as 3.1% on Friday and was on course for a fourth consecutive weekly loss. The move followed an overnight selloff in US technology shares and coincided with a downturn in artificial-intelligence related stocks worldwide.

Heavyweight constituents Samsung Electronics and SK Hynix (SKHY) both dropped more than 2% in early Seoul trading, exerting significant pressure on the index. SK Hynix was down 4% and Samsung Electronics fell 3.6%, underscoring the concentrated weakness in the sector.

The pressure on South Korean shares formed part of a wider selloff across Asian equity markets. The Kospi’s decline was mirrored by losses in other regional benchmarks, with Japan’s Nikkei 225 falling as much as 0.6%, reflecting a broad retreat in technology and export-oriented names.

The weakness was closely tied to declines in artificial-intelligence and other technology stocks, which played a central role in dragging markets lower. Across the region, major chip and component producers such as Kioxia and Murata Manufacturing in Japan and Taiwan Semiconductor Manufacturing (TSM) faced selling pressure, highlighting investor caution toward the semiconductor and AI supply chain.

The downturn in Asia fed into a global pullback, with AI-focused stocks at the center of the move. Equity markets worldwide came under pressure as investors reduced exposure to companies linked to the artificial-intelligence industry. Indexes with heavy technology weightings were particularly affected, reflecting concerns about the sector’s recent gains and future prospects.

The decline in AI-related names extended beyond chipmakers to a broader range of technology stocks. This broadening of weakness contributed to synchronized declines across multiple major markets, with South Korea, Hong Kong and Japan all recording sizeable drops in their key benchmarks.

At the same time, a rise in oil prices added another layer of pressure on global stocks. Crude prices climbed to their highest levels since May, coinciding with worries related to the war with Iran. Higher energy costs raised concerns about input expenses and inflation risks, which can weigh on corporate margins and broader economic activity.

The combination of sinking AI and technology stocks and climbing oil prices created a challenging backdrop for investors. With the Kospi already heading for a fourth weekly loss, the latest moves reinforced a period of sustained weakness in South Korean equities and underscored the sensitivity of regional markets to shifts in global technology sentiment and commodity prices.