Taiwan readies $15BN fund as Seoul waives margin calls after AI selloff

Taiwan and South Korea took emergency steps after a rapid selloff in technology shares spread across Asian markets. Taiwan’s Taiex fell as much as 9% and entered a bear market, while South Korea’s Kospi dropped as much as 8.8%, triggered a 20-minute market-wide halt and briefly fell below 5,000.

The moves followed a severe US technology selloff described as the Nasdaq’s worst day since Covid, with the SOX semiconductor index down 12%. The sequence marked a shift from a Wall Street-led decline to a regional market-stability response.

Taiwan prepared a $15BN fund and curbed short selling, while Seoul waived margin calls as officials sought to limit forced liquidation. The measures directly connect government intervention with brokers, leveraged investors and the region’s semiconductor-heavy equity markets.

The immediate market impact remains uncertain. The reported actions may slow forced selling, but they do not by themselves establish that the underlying AI-related unwind has ended or that investor demand has recovered.

The next signals are whether Taiwan’s and South Korea’s markets stabilize after the emergency measures, whether trading restrictions are extended, and whether the Nasdaq and semiconductor shares resume their decline. Further official interventions or renewed volatility would indicate how durable the response is.