South Korean chip stocks plunged sharply in early trading on Friday, with shares of Samsung Electronics and SK Hynix both falling more than 10%, dragging the Kospi down 8.8% and prompting the Korea Exchange to suspend trading for 20 minutes after the open. The market is concerned that the Democratic Party's sweeping congressional victory could slow the AI construction boom. Global stock markets also suffered heavy losses on Thursday, with the Nasdaq 100 index falling 6.4% and wiping out $2.3 trillion in market value—a record. This round of decline pushed the Kospi below the 5,000-point target set by President Lee Jae-myung in 2025. Previously, the AI boom had boosted chipmakers' profits, and the Kospi quickly broke through that target; however, as market doubts about the AI outlook intensified, the Kospi has plunged 46% from its historical high in June, and 5,000 points has once again become the focus. Kim Dojoon, chief executive of Zian Investment Management, said the market has entered a phase of panic selling, and most participants are likely being forced to sell.