South Korea's KOSPI benchmark plunged nearly 9% in early trade Monday, tripping circuit breakers after robust U.S. jobs data reignited Federal Reserve rate hike fears, hammering the tech-heavy market.
Samsung Electronics and SK Hynix both dropped more than 10%, as the two chipmakers-which account for over half the index-saw their valuations fall sharply. Circuit breakers halted trading for 20 minutes for the third time this year.
The won rebounded 0.7% to 1,548.9 per dollar after authorities held an emergency meeting and vowed action against speculative trading. Foreign investors were net sellers for a 21st straight session, offloading $774 million worth of local shares.
President Lee Jae Myung called the market "still undervalued" and described the exchange rate as temporary. SK Hynix shares later cut losses to 3.8% after Nvidia CEO Jensen Huang described it as the company's "biggest partner" during a visit to South Korea.
Despite the rout, the KOSPI is up 83% year-to-date after a record 76% gain in 2025.