South Korean stocks plunge over 7% at opening, tech shares lead fall

South Korea's primary stock market index, the Kospi, experienced a dramatic opening on Friday, plummeting over 7% as technology shares led the downturn. The sharp fall followed a similar trend on Wall Street, where major tech companies are under scrutiny due to their quarterly results and doubts about the long-term viability of the artificial intelligence boom.

Within the first 20 minutes of trading, the Kospi index had fallen 7.43%, or 502.17 points, to 6,253.58. The Korea Exchange (KRX), the operator of the South Korean stock market, was compelled to implement a 'sidecar' for selling. This mechanism temporarily suspends programmed sales for five minutes after the Kospi 200 futures index dropped more than 5% within a minute.

The Kosdaq index, which comprises technology and mid-cap companies, also suffered, declining 5.17%, or 39.54 points, to 725.32. The downward trend extended to the automotive sector, with Hyundai Motor shares falling 4.71% and its affiliate Kia down 2.76%. Defense stocks also saw losses, though Korea Aerospace Industries opened flat.

Leading the tech slump were chipmakers, with Samsung Electronics decreasing over 6% and rival SK Hynix plunging more than 9.3%. Investment firm SK Square plummeted over 9%, and Hanmi Semiconductor, a developer of chip manufacturing equipment, saw its shares decline by more than 8%.