South Korea's KOSPI slides over 6% amid foreign sell‑off and circuit‑breaker triggers

On June 26 the KOSPI index plunged more than 5% intraday, falling to around 8,100‑8,300 points. The drop was driven by a sharp net sell‑off of about 1.4 trillion won by foreign investors, while domestic retail and institutional investors continued to buy. Profit‑taking in semiconductor stocks after Micron’s earnings surprise and mixed US tech market moves added pressure, pushing major chips such as Samsung Electronics and SK Hynix down 7‑9%.

The rapid decline triggered the market’s automatic “circuit‑breaker” for the fifth time this year, halting trading for 20 minutes after the KOSPI200 futures fell more than 5% for a minute. The KOSDAQ also slipped 2‑4%, with small‑cap stocks showing divergent moves – some like Seosan and APPCO surged double‑digit gains, while others such as Baion and Shapheron fell sharply. Shipbuilding shares fell 16% over the week, but analysts highlighted continued optimism from the Canadian submarine project and new floating data‑center ventures.