Key facts
- South Korean stocks tumbled nearly 6% on Friday.
- The KOSPI index fell 5.81% to close at 8,411.21.
- A circuit breaker was activated, halting trading for 20 minutes.
- The decline was attributed to profit-taking after AI-driven rallies.
- This is the fifth circuit breaker activation for the KOSPI this year.
South Korean stocks experienced a significant downturn on Friday, with the benchmark Korea Composite Stock Price Index (KOSPI) falling nearly 6 percent. The decline, attributed to investors taking profits after recent rallies fueled by artificial intelligence-related stocks, led the bourse operator, KRX, to activate a circuit breaker. This resulted in a 20-minute halt in trading for KOSPI-listed shares after the index dropped over 8 percent from its opening. The KOSPI closed down 519.09 points, or 5.81 percent, at 8,411.21. This marks the fifth instance this year that the KRX has implemented a circuit breaker for the KOSPI.