South Korea's benchmark KOSPI index experienced a volatile trading session on Friday. The index opened marginally lower at 7,038.85, down 0.2%, before a sharp sell-off in semiconductor stocks sent it tumbling more than 3% during intraday trading. The market managed to pare some of those losses by the close, finishing the day down 1.8% at 6,909.91. This marks the second consecutive daily decline for the index.

The primary drag on the market was a broad pullback in chip stocks, which had previously been the main drivers of the recent rally. The profit-taking in these heavyweight technology names weighed heavily on the broader index. Despite Friday's weakness, the KOSPI still managed to post a solid weekly gain of 3.3%, bolstered by strong gains earlier in the week.

In political news, South Korean media reported, citing the presidential office, that President Lee Jae-myung will host a summit with leaders from five Central Asian nations in Seoul on September 16. The meeting is scheduled for Wednesday afternoon and will include the leaders of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan to discuss bilateral cooperation with South Korea.

Separately, South Korea's foreign ministry announced on Friday that Foreign Minister Cho Tae-yul held a telephone conversation with his Iranian counterpart, Abbas Araghchi. The two discussed the situation in the Middle East, including the topic of freedom of navigation in the Strait of Hormuz. In a statement, the ministry said Cho expressed deep concern over the current situation and voiced hope for the restoration of lasting peace and stability in the region.