South Korea activated a circuit breaker protocol for the Kospi Index, pausing trading for 20 minutes after the bourse fell 8.03%, nearing the 7,400-point mark on Tuesday.
The Kospi index saw a sharp pullback, primarily due to steep losses among major technology firms. Shares in both SK Hynix and Samsung Electronics plunged, despite the latter posting a significant jump in quarterly earnings preview.
Samsung Electronics announced preliminary second-quarter operating profit of 89.4 trillion won ($58 billion), rising dramatically from the prior year and surpassing market forecasts, driven by surging demand for memory chips supporting AI infrastructure. Analysts had been expecting operating profit closer to 84.2 trillion won.
Investors have grown cautious, looking for clearer signs that the AI cycle can maintain its rapid growth pace. The tech sector in the U.S. recently marked a record quarterly performance, but attention has now shifted to whether current levels of investment and increased competition will continue to support earnings growth in line with high expectations.
