South Korea's Kospi plunged more than 5% on Monday after surging a record 18% in the previous session, as renewed selling in heavyweight chipmakers and leveraged ETF-related volatility rattled investors. While analysts expect near-term turbulence to persist, they believe easing foreign selling and corporate shareholder returns could support the market's longer-term rerating.

KOSPI plunged 10.8% as Samsung and SK Hynix sold off sharply after China's CXMT IPO surged 466%, rattling global chip and crypto risk sentiment.

South Korea's KOSPI crashed 12.6% intraday after doubling on AI chip demand, erasing $2.18 trillion before rebounding 17.9% the next day.