The South Korean stock market went from record highs to a sharp sell-off, with the benchmark Kospi tumbling as low as 10% on Tuesday. The drop came as investors rushed to sell chip stocks over fears of excessive speculation.

South Korea's KOSPI index plunged 8.3% as Samsung and SK Hynix led a semiconductor sell-off, triggering circuit breakers for the third time in 2026.

South Korean stocks experienced a sharp decline of over 4% on Tuesday, with the KOSPI index plummeting as investors cashed in on recent gains in chipmaker shares. Major players…