South Korea's KOSPI has entered bear market territory after falling about 25% from its late-June record high, following a spectacular AI-driven rally. Reuters said the correction highlights risks from the market's heavy reliance on semiconductor stocks and leveraged retail trading.

South Korean shares plunge over 5% as chipmakers falter amid AI concerns, triggering trading curbs on the KOSPI.

South Korea's Kospi plunged 5% on Tuesday, extending its two-day decline to nearly 14% and taking the index into bear market territory. The benchmark has fallen over 31% from its…