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KOSPI index recovers after massive 40% selloff in AI chip stocks
South Korea's KOSPI index experienced extreme volatility following a massive selloff in July, which saw the index lose approximately 40% of its value from its June peak. This crash was largely driven by the rapid unwinding of leveraged retail positions in AI-related semiconductor stocks, such as Samsung Electronics and SK Hynix. The carnage peaked on July 28 with a single-day decline of 10.84%, a drop that erased over $2 trillion in market value and triggered several circuit-breaker halts.
In response to the high market volatility, South Korean regulators implemented measures to curb speculation. These included raising barriers to trading single-stock leveraged ETFs, temporarily halting new listings for such products, and tightening margin trading requirements.
By early August, the market showed signs of stabilization and a sharp rebound. On July 7, the KOSPI attempted a recovery, rising about 1% in early trading to reach approximately 6,415 points. During this session, Samsung Electronics and SK Hynix both saw gains, with Samsung rising roughly 2-3% and SK Hynix increasing between 0.6% and 2%.
Entities
AI spending · ASML Holding N.V. · Advanced Micro Devices Inc · Artificial intelligence (AI) sector · Foreign investors · KOSPI · KOSPI · KOSPI index · Korea Ministry of Finance · Nikkei 225 · Nikkei 225 · SK Hynix
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] The KOSPI later fell over 4% to 6,332.26 on June 6. biz.heraldcorp.com
- [○ 1 SOURCE] Foreign investors net bought about 2.99 trillion won of Korean stocks on June 5.
- [● 3 SOURCES] SK Hynix dropped between 6% and 8% on June 6. biz.heraldcorp.com · www.hani.co.kr
- [○ 1 SOURCE] The KOSPI rose more than 4% to 6,625.88 on June 5.
- [● 2 SOURCES] SK Hynix shares rose about 5.90% to 1,670,000 won on June 5.
- [● 2 SOURCES] Samsung Electronics shares increased about 4.58% to 251,000 won on June 5.
- [● 2 SOURCES] KOSPI fell more than 2% to 6,452.37 on June 6. biz.heraldcorp.com
- [● 3 SOURCES] Samsung Electronics fell about 4% on June 6. biz.heraldcorp.com
- [● 2 SOURCES] KOSPI rose more than 4% to about 6,603 points on June 5.
- [● 5 SOURCES] KOSPI fell over 4% to about 6,332 points on the day of the sell‑off. www.hani.co.kr · www.businesstimes.com.sg · www.standard-democrat.com · econotimes.com · biz.heraldcorp.com
- [● 5 SOURCES] The KOSPI decline triggered a sell‑side sidecar on KOSPI futures. www.hani.co.kr · biz.heraldcorp.com · jack1065.com · www.standard-democrat.com · www.imaeil.com
- [● 7 SOURCES] Samsung Electronics shares fell about 6% on the same day. www.businesstimes.com.sg · www.standard-democrat.com · econotimes.com · www.hani.co.kr · biz.heraldcorp.com · +2 more