South Korea’s finance ministry said after a meeting between the finance
minister, the central bank governor and financial regulators that they will
closely monitor risks that could amplify stock-market volatility. The ministry
cited foreign and institutional profit-taking, portfolio rebalancing and shifts
in global AI-sector expectations as drivers. The KOSPI fell as much as 4% in
early trade, touching its lowest level since May 20, before turning positive
after a rebound in chip stocks. The ministry said rising concentration in the
semiconductor industry is amplifying financial-market volatility and that
chip-sector swings are increasingly affecting the broader market; regulators
have issued prior warnings.
