South Korea's stock market, represented by the Kospi, fell 6% following a record rally that saw it briefly surpass 8,000 points. The decline was driven by profit-taking among investors, particularly in AI-linked semiconductor stocks like Samsung Electronics and SK Hynix, which dominate the market. Concerns over labor disputes and global economic factors also contributed to the selloff.

• 01The Kospi index had nearly tripled from around 2,600 a year ago, marking it as one of the best-performing major equity markets.
• 02Samsung Electronics and SK Hynix accounted for nearly half of the Kospi's weighting and two-thirds of its gains this year.
• 03Foreign investors sold 5.6 trillion won worth of Korean shares during the recent session, contributing to a total outflow of 14.3 trillion won for the week.
• 04Concerns over a labor dispute at Samsung added to investor anxiety, with negotiations expected to resume only after June 7.
• 05Despite the correction, analysts remain optimistic about South Korea's long-term prospects in AI-driven semiconductor manufacturing.

The selloff may lead to increased caution among investors, particularly in the semiconductor sector, impacting market confidence and future investments.