KOSPI extended losses, sliding as much as 6% intraday and falling over 20% from
its June peak, putting the market on track for a technical bear. Samsung
Electronics and SK Hynix dropped about 7% and 5% respectively as investors
reprice AI-driven demand. Leveraged ETFs amplified volatility. The chip sell-off
persisted despite Samsung reporting quarterly profit up 19-fold this week,
highlighting traders’ demand for more evidence that huge semiconductor
supply‑chain capex is justified. Fidelity International portfolio manager Ian
Samson said the volatility largely reflects fundamental uncertainty: strong
AI-led chip demand is concentrated in roughly $1 trillion of capex by a handful
of large tech firms, and if that spending proves unsustainable there is downside
risk.
