South Korean Shares Sinks Below 5,000

The benchmark KOSPI slumped 7.77% to around 4,966 on Friday, falling below the 5,000 milestone and hitting a nine-month low, as a sharp sell-off in technology shares followed an overnight rout on Wall Street. Investor concerns intensified after the Democrats’ sweeping victory in the US midterm elections raised fears that tighter regulations could slow AI infrastructure and data center investments. The tech-heavy Nasdaq plunged 5.52%, while the S&P 500 dropped 4.36%. South Korean chipmakers bore the brunt of the sell-off, with Samsung Electronics (-7.99%) and SK Hynix (-9.97%) recording losses. The sharp decline triggered a circuit breaker shortly after the opening bell, suspending KOSPI trading for 20 minutes from 9:03 am. Meanwhile, rising oil prices amid Strait of Hormuz disruptions added to concerns. Finance Minister Lee Hyoung-il pledged measures to curb volatility, while the trading halt marked the 10th circuit breaker activation this year.