South Korea's high-flying stock index is having a harder time staying airborne.
The Kospi index entered a technical bear market (defined as a 20% drop from a recent high) after plunging more than 5% today.
Even with its recent slide, the Kospi is still the best-performing stock index in the world this year, up more than 70% thanks largely to enthusiasm about AI.
Yet its tumble highlights the risks of relying too heavily on one sector for market gains. AI chip makers Samsung and SK Hynix account for roughly half of the Kospi index's market capitalization, and their shares have pulled back 17% or more this month.
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