South Korea’s KOSPI Crashes 6.5% Today – AI Crypto Down 10%

South Korea’s KOSPI index crashed 6.5% on 13 October, falling to around 6,002 as investors sold semiconductor stocks. The drop followed Chinese chipmaker CXMT’s announcement of a new memory chip design, raising fears of stronger competition for South Korean giants like Samsung Electronics and SK Hynix.

This drop has also impacted AI-related tokens such as NEAR, ICP, FET, and TAO, which fell 5% to 10%.

KOSPI Crashed as China’s New 4F² Chip Triggers Sell-Off

The KOSPI index fell 400 points to 6,002. The index has dropped more than 13% in five days and is now over 35% below its record high in June.

Meanwhile, the sharp fall forced South Korea’s stock exchange to step in after KOSPI 200 futures dropped more than 5%. The exchange used a safety measure called a “sidecar” to slow down fast computer-driven trading and help calm the market.

The sell-off came from China’s chip industry could challenge South Korea’s lead in memory chips. ChangXin Memory Technologies (CXMT), a Chinese chipmaker, announced a new 4F² memory-cell design that could reduce the space needed for DRAM cells by about 30%

The company aims to bring its next-generation server memory chips into mass production by the end of 2026.