Korean Stocks Fall More Than 4% From Record High on Tech Selloff

South Korean stocks experienced a significant decline, falling more than 4% from their record high on June 10, 2024, driven by a broad selloff in technology shares. The benchmark KOSPI index dropped by 3.07% on the day, with major chip manufacturers leading the downturn. Samsung Electronics saw its stock price decrease by 3.9%, while SK Hynix experienced a 5.5% drop. This selloff reflects investor concerns that the recent market rally, particularly in the technology sector, may have become unsustainable. The broader market sentiment was also affected by a 1.2% fall in the Nasdaq Composite index in the previous trading session, signaling a global trend of profit-taking in tech stocks. Analysts suggest that the market may be due for a correction after a prolonged period of gains, with investors re-evaluating valuations amidst rising interest rate uncertainties and geopolitical tensions. The decline on June 10 marks the largest single-day percentage drop for the KOSPI since September 2022, highlighting the fragility of the recent market highs.