On Monday, South Korea's KOSPI Index plunged more than 8%, resulting in a 20-minute trading halt shortly after the market opened. This decline was primarily driven by investors unwinding their positions in artificial intelligence stocks, which had previously fueled a significant equity rally. Major companies such as Samsung Electronics and SK Hynix were heavily impacted, with shares dropping 11% and 10%, respectively. The Korea Exchange responded by convening an emergency meeting to discuss the volatility and potential stabilization measures. Foreign investors continued to sell off their holdings, having withdrawn over $10 billion in KOSPI shares on a net basis last week. Additionally, margin debt surged to a record 38 trillion won (around $24.4 billion) by the end of May, further intensifying the market's decline. Despite the downturn, a recent partnership announcement between Nvidia and SK Hynix regarding next-generation AI memory chips did not mitigate the selloff. Analysts noted that the crowded positions in semiconductor stocks and the current volatile market conditions have led to panic selling, although some remain cautious about declaring a prolonged bear market just yet.