The KOSPI index fell more than 5% on Monday, triggering a short stop as a heavy tech selloff gripped Seoul. The Korea Exchange engaged a sell-side sidecar tool to slow the drop. Market entry into bear territory followed sharp losses in AI chip stocks. Foreign investors recorded historic outflows amidst the market decline. The South Korean won dropped below 1,500 per U.S. dollar during the session. Both the Nikkei 225 and KOSPI opened lower due to general market concern. Financial Times reported that traders now fret over the future of AI chipmakers. Bloomberg pointed out a rotation trade driving Korean stocks down while Chinese markets surged. KRX put out the sidecar order as the sharp fall deepened across the board.