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South Korean stocks tumbled nearly 6 percent on Friday as investors locked in profits after recent rallies fueled by artificial intelligence-related shares, according to Yonhap News Agency. The benchmark Korea Composite Stock Price Index (KOSPI) lost 519.09 points, or 5.81 percent, to close at 8,411.21, after falling as low as 8,126.84. The Korean won gained against the U.S. dollar.

The market rout came after the KOSPI rallied by 5.42 percent on Thursday and racked up a 3.26 percent rise on Wednesday, setting the stage for a sharp correction.

Coverage comparison

Both reports from Yonhap News Agency carried the same core facts: the KOSPI's steep decline, the circuit breaker activation, and the heavy trading volume. The two versions differed only in minor details, with one adding bond market information and the other noting a change in the photo caption. The fundamental narrative — profit-taking after AI-led gains and concerns over expensive memory chips — remained consistent across both reports.

Key claims

  • The KOSPI lost 519.09 points, or 5.81 percent, to close at 8,411.21, after falling as low as 8,126.84.
  • The index opened 1.31 percent lower and extended its losses to decline more than 8 percent, leading the bourse operator to activate a circuit breaker at 12:10 p.m. and halt trading of KOSPI shares for 20 minutes.
  • Foreigners and institutions sold a net 4.6 trillion won and 3.8 trillion won worth of shares, respectively, while individuals scooped up a net 8.2 trillion won.
  • Trade volume was heavy at 508.9 million shares worth 51.5 trillion won (US$33.5 billion), with decliners sharply outnumbering gainers 777 to 111.
  • Bond prices, which move inversely to yields, closed higher.

Market details

Semiconductor shares were the biggest losers. Samsung Electronics, the world's largest memory chipmaker, tumbled 5.3 percent to 339,500 won, while runner-up SK hynix slumped 8.36 percent to 2.67 million won. SK Square, the parent of SK hynix, plunged 9.43 percent.

Overnight on Wall Street, tech heavyweights finished mixed. Micron Technology jumped 15.7 percent on strong earnings, while Apple dropped 6.1 percent after the company hiked prices on many of its products due to expensive memory chips.

The sell-off was driven by investor concerns that soaring memory chip prices could push up costs for end-use products, potentially undermining demand and discouraging tech companies from expanding large-scale AI investment, according to Han Ji-young, an analyst at Kiwoom Securities.