South Korea’s benchmark Kospi index sinks more than 7% as tech sell-off deepens

South Korea's Kospi index experienced a steep decline of over 7% on Thursday, amid a widespread sell-off of technology shares following a surge in U.S. stock prices due to inflation data that was hotter than anticipated. This significant drop in the Korean benchmark index, which opened at 6,024.12 points, was driven by a sharp downturn in major tech companies.

Samsung Electronics, a major player in the South Korean tech sector, witnessed a steep 8.2% decline. SK Hynix, a key memory chip manufacturer, suffered an even steeper 10.8% drop. The overall impact extended beyond Korea, with Japan's Nikkei 225 index also taking a hit, falling by 3.9% to 65,119.51 points.

The decline was not limited to technology stocks alone; investor-led selling in other sectors was also evident. SoftBank Group, a prominent investor in tech companies, saw its share price plummet by 9.1%. Similarly, Tokyo Electron, a key player in the chip equipment industry, faced a 6.3% decline in value.