KOSPI Plunges 6.4% as Korea Curbs Chip ETFs

The sell-off was exacerbated by rising Middle East tensions and a global tech rout, with SK Hynix and Samsung Electronics plunging so sharply that the Korea Exchange briefly suspended trading.

The Financial Services Commission unveiled measures to rein in leveraged ETFs tracking the chipmakers, which it blamed for amplifying market volatility.

The benchmark KOSPI closed at 6,820.60, and the weakness spread to US futures, with Nasdaq contracts falling.

The turmoil highlights the fragility of the AI-driven rally that had propelled Korean chip stocks to record highs.