Korean Stocks Plunge 9% on Chip Selloff

Summary

South Korean stocks plunged up to 9%, triggering a second trading halt, driven by a triple catalyst: Apple pricing concerns, OpenAI shelving its IPO, and a government-backed capex plan by Samsung and SK Hynix that stoked fears of stateled overspending. The selloff rattled Asian tech supply chains, with smaller Apple suppliers in Taiwan hitting limit down, while TSMC proved relatively resilient.

• Kospi briefly down 9%, second trading suspension in a week.
• Apple's chip supply shortage forces price rises, shaking tech sentiment.
• OpenAI reportedly shelving IPO plans adds revenue-side pressure on AI trade.
• Samsung and SK Hynix massive capex plan with government sparks 'common prosperity' fears.
• AI trade squeezed on costs (memory) and revenues (OpenAI).
• Smaller Taiwanese Apple suppliers hit limit down; TSMC only down ~2%.
• Korean retail extremely long, implied vol fell as traders sold volatility into weekend.