South Korean stocks suffered a historic sell-off on July 29, 2026, with the benchmark KOSPI plunging more than 12% in its second consecutive day of heavy losses. The decline marked one of the sharpest market routs in South Korea’s history and erased a significant portion of the gains built during the country’s AI-driven stock rally.
The sell-off was led by major technology and semiconductor companies. SK Hynix shares fell around 16%, while Samsung Electronics dropped nearly 10%. The declines came after SK Hynix reported a huge increase in quarterly profit but fell short of investors’ elevated expectations.
Investors have become increasingly concerned about whether the rapid growth in AI-related technology stocks can continue at its previous pace. The reversal has been particularly painful for small investors who used borrowed money to invest in chipmakers, with forced liquidations adding further pressure to the market.
South Korean authorities are considering measures to stabilize the market, including possible changes involving leveraged exchange-traded funds. Despite the dramatic decline, the KOSPI remained significantly higher than at the beginning of the year.
News as Reported.
