South Korea's Kospi index plunged over 6% at one point due to chip stocks and US attack on Iran.

The benchmark stock index in South Korea fell on Wednesday, with chip stocks continuing to decline and the market risk preference weakening due to the impact of the US attacks on Iran. The Kospi index fell by 6.5% during the afternoon trading session after rising by 8.2% on Tuesday. Following a sharp drop in the index futures, the Korea Exchange briefly suspended programmatic sell orders for Kospi. The index plummeted by 8.3% on Monday, leading to a 20-minute halt in trading in the spot market. With Samsung Electronics and SK Hynix facing turbulence affecting AI stocks, such drastic fluctuations are becoming more common; these two companies collectively account for more than half of the index's market value. Investors also paid attention to the US inflation report on Wednesday, which could provide a clearer indication of whether interest rates will remain at high levels for longer. As leveraged ETFs linked to Samsung Electronics and SK Hynix become increasingly popular, volatility has also intensified, as these funds can amplify daily price fluctuations. The Kospi 200 volatility index broke through 90 for the first time on Tuesday, setting a record.