Woofun AI reports that South Korea’s KOSPI index declined by 6.1% on Friday, with Samsung Electronics and SK Hynix shares both dropping more than 7%. The sharp volatility prompted the South Korean stock exchange to temporarily suspend algorithmic trading, a safety measure that has been activated with increasing frequency in recent weeks within the $4.1 trillion market.

Global investors resumed selling South Korean equities, particularly technology stocks, after four consecutive days of net buying. This sell-off coincided with rising Middle East tensions that pushed oil prices near $100 per barrel. Shawn Oh, head of cash equities at NH Investment & Securities, stated that local funds are reducing tech holdings to lower risk before the weekend. Roy Lim, a trader at Samsung Securities, noted that some Asian hedge funds are selling Samsung and SK Hynix shares to increase positions in China’s ChangXin Technology, which is scheduled to list on July 27.