KOSPI Slides More Than 8% as Chip Rout Hits Korean Equities
AI Market Summary
South Korea's KOSPI fell over 8% intraday, wiping roughly $350B in market cap as semiconductor bellwethers Samsung Electronics and SK Hynix sold off sharply following weakness in U.S. chip stocks. June inflation at 3.2%, above expectations, compounded risk aversion by raising policy uncertainty. The combination of global tech contagion and hotter inflation signals tighter financial conditions, elevating near-term volatility across Korean equities.
Impact level
● High
Affected assets
NCSIKOSPI2USD/USDT-3.76%
AI Insight · NCSIKOSPI2USD/USDTAI Insight
▼ Bearish
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South Korean equities sank on Thursday, with the benchmark KOSPI down more than 8% intraday and sliding below the 7,700 level, according to CoinDesk. The tech-heavy KOSDAQ also fell, as deepening losses fueled a broad shift toward risk aversion.
The selloff wiped about KRW 518.5 trillion (roughly $350 billion) from the Korean stock market's total market capitalization.
Large-cap names led the decline. Samsung Electronics dropped 8.5% intraday, while SK Hynix slid 11.5%. The move followed an overnight pullback in U.S. semiconductor shares, which weighed on sentiment at the open. As the market's key chip bellwethers, Samsung and SK Hynix tend to track global swings in the semiconductor cycle.
Domestic data added to the pressure. South Korea's June inflation came in at 3.2%, above market expectations, further dampening risk appetite and sharpening investor focus on potential policy responses.
Investors are now watching for additional signals from South Korean authorities aimed at stabilizing markets and for signs that volatility may ease in the sessions ahead.
