South Korea's KOSPI Plunges 8%, Triggering Circuit Breaker on AI Profit Doubts

South Korea's benchmark KOSPI index plunged 8% Tuesday, triggering a 20-minute trading halt. This is the sixth circuit breaker activation on the index this year.

The sell-off was led by major chipmakers. Shares of Samsung Electronics fell nearly 10% even after the company forecast a massive jump in quarterly profit. Analysts say the strong results are already priced in after a record rally.

SK Hynix dropped over 10%. The broader market remains up 76% for the year, led by chip stocks.

In other moves, battery maker LG Energy Solution slid after warning of a sharp profit decline due to weak EV demand. Shipbuilder Hanwha Ocean plunged after losing a major Canadian submarine contract to Germany.

Foreign investors were net sellers, dumping over $2 billion in shares. The Korean won edged slightly higher against the dollar.