（Singapore, 26.06.2026）South Korea’s stock market suffered one of its sharpest selloffs this year on Friday, with the benchmark Kospi plunging as much as 9% and triggering an automatic 20-minute trading halt. The sharp decline came as semiconductor giants Samsung Electronics and SK Hynix tumbled, highlighting growing investor concerns that the global artificial intelligence (AI) boom may be entering a more uncertain phase.
The selloff marked a dramatic turnaround from just a day earlier, when strong earnings from US memory chipmaker Micron Technology had lifted confidence in AI-related stocks. However, renewed worries over rising technology costs, potential delays to OpenAI’s planned initial public offering (IPO), and broader volatility in global technology shares quickly erased that optimism.
South Korea’s chip-heavy market led losses across Asia. Samsung Electronics and SK Hynix both fell more than 10% during morning trading before recovering slightly, while foreign investors sold nearly 3 trillion won (S$2.5 billion) worth of Kospi shares in the first half of the trading session.
The Korea Exchange temporarily suspended trading for 20 minutes after the benchmark index breached the threshold for a circuit breaker, marking the second such halt this week.
The sharp decline spread across regional markets. A broader Asian stock index dropped around 3%, while Nasdaq 100 futures fell 1.2% and S&P 500 futures slipped 0.6%, reflecting continued pressure on technology stocks worldwide.
Investor sentiment weakened after Apple raised prices for several products, including Macs and iPads, citing an unprecedented shortage of memory chips driven by soaring AI data center demand. The announcement triggered concerns that higher semiconductor costs could eventually hurt consumer demand and slow the strong earnings growth enjoyed by memory chipmakers.
At the same time, reports that OpenAI may postpone its planned IPO until 2027 added another layer of uncertainty for investors betting on continued momentum in AI-related investments. The news also weighed on Japanese technology shares, with SoftBank Group, a major OpenAI backer, falling 14% in Tokyo trading.
According to a Bloomberg report, Fabien Yip, a market analyst at IG International, said Asian technology stocks were facing pressure from two major developments at the same time.
She noted that Apple’s decision to increase prices suggested even one of the world’s largest technology companies was struggling to absorb rising memory chip costs, raising questions about how long strong profit margins in the semiconductor industry can be sustained.
At the same time, uncertainty surrounding OpenAI’s IPO plans reflected how recent volatility in technology stocks has begun to dampen investor enthusiasm for AI-related investments.
South Korea’s market has become increasingly sensitive to movements in semiconductor shares because Samsung Electronics and SK Hynix together account for nearly 60% of the Kospi’s total weighting.
The market has also experienced unusually large swings this year as retail investors increasingly use margin financing and leveraged exchange-traded funds (ETFs) focused on semiconductor companies. These products amplify market moves because they require frequent portfolio rebalancing during periods of heavy volatility.
Among the 11 circuit breakers activated in Kospi trading since 2000, five have occurred this year alone, underlining how much market volatility has intensified.
Homin Lee, a strategist at Lombard Odier, said the latest market weakness appeared to be driven largely by concerns over a possible delay in OpenAI’s IPO and Apple’s price increases rather than company-specific fundamentals.
He said those developments have intensified debate over whether the current memory chip shortage can continue supporting the AI investment cycle, adding that volatility is likely to remain elevated because of heavily leveraged trading activity.
Despite Friday’s sharp selloff, South Korea’s two largest chipmakers are reportedly preparing to announce some of the biggest investment plans in the country’s history.
According to South Korean media reports, Samsung Group is expected to unveil a 1,000 trillion won (S$837 billion) investment programme over the next decade during a presidential economic briefing on Monday. The spending package would be the largest corporate investment commitment ever announced in South Korea.
SK Hynix is also expected to outline significant expansion plans as it continues increasing production capacity to meet growing global demand for high-bandwidth memory (HBM) chips used in AI servers and advanced data centres.
President Lee Jae Myung is scheduled to host a national economic briefing focusing on semiconductors, AI data centres and other strategic industries, with senior executives from Samsung and SK Hynix expected to attend.
South Korean presidential policy chief Kim Yong-beom said “very unusual” investment figures would be revealed during the event, signalling major long-term commitments by the country’s largest technology companies.
Market analysts, however, do not believe the planned spending announcements triggered Friday’s share price decline.
Lee said expanding production capacity remains essential for Korean chipmakers to maintain their global leadership and support long-term demand.
Charu Chanana, chief investment strategist at Saxo Markets, said the AI memory chip market still has room to grow, but investors are becoming more selective.
She said while demand for memory chips remains strong today, investors are increasingly questioning whether the broader AI investment boom can continue at its current pace. As a result, markets have begun pricing with the possibility that growth across the wider AI sector could eventually moderate, leading to greater volatility in semiconductor stocks.
The latest selloff illustrates how closely global markets remain tied to developments in artificial intelligence. Although demand for AI infrastructure continues to support long-term investment, shifting expectations around technology spending, corporate expansion and future IPOs are making investors increasingly cautious after months of rapid gains.
