South Korea's KOSPI extended its losses on Friday, falling nearly 6% as investors continued to reduce exposure to the country's technology sector following a broad global semiconductor selloff.

The index remained under pressure after concerns over AI-related valuations triggered heavy selling in major chipmakers earlier this week. Although Micron's strong earnings reaffirmed robust long-term AI demand, investors continued taking profits in Korean semiconductor stocks, with heavyweight memory producers leading the decline.

Sentiment was also weighed down by uncertainty surrounding global trade and persistent inflation concerns in the United States. The latest U.S. Core PCE data remained well above the Federal Reserve's 2% target, reinforcing expectations that interest rates could stay elevated for longer and reducing appetite for high-growth technology stocks.

With semiconductor companies accounting for a significant share of the KOSPI, continued weakness in the global chip sector has amplified selling pressure. Investors will now watch for signs of stabilization in AI-related technology stocks and upcoming economic data to gauge whether the recent correction has run its course.