Kospi plunges below 7,000 amid market turmoil

Kospi drops below 7,000 points, losing over 8%. Circuit breakers triggered amid geopolitical tensions and tech sector volatility, fueling investor panic in South Korea.

The Kospi, South Korea's main stock index, has suffered a significant decline, dropping below the 7,000-point level for the first time since May. The index fell more than 8% intraday, prompting the activation of circuit breakers for the seventh time this year. This sharp correction is attributed to rising geopolitical tensions in the Middle East, surging oil prices, and heightened volatility among major tech firms like Samsung Electronics and SK Hynix. Investors are also wary of upcoming monetary policy decisions, adding to the market's uncertainty. With the Kospi down 26% from its annual high, concerns are growing over the market's reliance on a handful of large-cap stocks and the potential for an AI-driven bubble. As volatility spreads across Asian markets, investors are increasingly seeking safe-haven assets.