South Korea’s AI Stock Rally Wiped Out as Chip Selloff Accelerates

South Korean stocks have fallen sharply, erasing all gains from the recent artificial intelligence rally. The decline is driven by a deepening selloff in semiconductor shares. Major chipmakers, which had led the market’s surge earlier this year, are now suffering heavy losses. Investors are worried about slowing demand and global trade tensions. The benchmark KOSPI index dropped more than 3% in a single session. Analysts say the selloff reflects broader uncertainty in the tech sector.