South Korea’s KOSPI Plunges as Apple Price Hikes and OpenAI IPO Delay Shake AI Chip Stocks

South Korea’s benchmark KOSPI index suffered a steep selloff on Friday as investors dumped technology and semiconductor stocks following Apple’s latest price increases and reports that OpenAI may delay its highly anticipated initial public offering (IPO). The sharp decline underscored growing concerns about the sustainability of the artificial intelligence-driven stock rally that has fueled gains across Asian markets.

The KOSPI plunged more than 8%, triggering a market-wide circuit breaker that temporarily halted trading for 20 minutes. It marked the fifth trading suspension implemented by the Korea Exchange in 2026 and the third such halt this week, highlighting heightened market volatility. The benchmark was also on track to post a weekly loss of nearly 10%, as investors locked in profits after months of strong gains in semiconductor shares.

Market sentiment weakened after Apple Inc. saw its shares fall roughly 6% on Wall Street following announcements of higher prices for several products. The company cited rising memory chip costs as a key reason for the increases, sparking concerns that higher component prices could eventually weigh on consumer demand and technology spending.

Investor confidence was further shaken after a report from The New York Times suggested that OpenAI is considering postponing its planned IPO until 2027. The report fueled fresh doubts about lofty valuations across AI-related companies, prompting traders to reduce exposure to high-growth technology stocks.

South Korea’s semiconductor giants Samsung Electronics and SK Hynix led the market decline, with both companies losing more than 9% during Friday’s session. The losses came despite reports that Samsung is preparing to announce an investment exceeding 1,000 trillion won ($646 billion) over the next decade to expand semiconductor manufacturing capacity and advanced technology infrastructure.

Samsung and SK Hynix have been among the biggest beneficiaries of surging global demand for artificial intelligence memory chips over the past year, making them the primary drivers of the KOSPI’s remarkable rally in 2026. Their growing market capitalization has also increased their influence on the benchmark index, meaning sharp declines in the two stocks have an outsized impact on overall market performance.

The broader AI sector has also faced mounting pressure following the U.S. Federal Reserve’s recent hawkish policy stance. Expectations that the central bank could raise interest rates later this year have reduced investor appetite for high-valuation technology companies, particularly those tied to artificial intelligence.

Adding to market uncertainty, the head of South Korea’s financial watchdog warned that regulators may have approved leveraged exchange-traded funds linked to Samsung Electronics and SK Hynix too quickly. The products, introduced only last month, have been blamed for amplifying price swings and increasing market volatility.

Despite this week’s sharp correction, the KOSPI remains one of the world’s strongest-performing stock markets in 2026. The index is still up approximately 90% year-to-date, supported largely by robust investor enthusiasm surrounding artificial intelligence, semiconductor manufacturing, and next-generation technology investments. However, Friday’s dramatic selloff highlights how quickly sentiment can shift as investors reassess valuations and future growth prospects across the AI sector.