Kospi crashes 44% in a month but Nomura sees 109% upside in South Korea's stock market. Here's why
Samsung and SK Hynix shares fell 13.4% and 14% as Chinese chip advances and export-control worries hit South Korea’s AI-driven rally.
- The Korea Composite Stock Price Index has suffered a remarkable decline over the past six weeks, shedding more than a third of its value and closing at 5,663.24 on Wednesday, July 29 after hitting a record high on June 19.
- Reports of Chinese companies developing domestic deep ultraviolet lithography equipment created severe downward pressure on key stocks, as Samsung Electronics and Hynix fell 13.4 percent and 14 percent respectively amid competition concerns.
- South Korea's semiconductor exports reached $44.8 billion in June 2026, accounting for 43.8 percent of total exports, with Samsung Electronics and Hynix accounting for almost half of the benchmark KOSPI.
- Japanese chipmaker Kioxia Holdings tumbled 18 percent and Taiwanese chip designer MediaTek fell 9 percent as sell-offs spread throughout Asia, signaling broader regional contagion beyond South Korea.
- A sustained KOSPI recovery depends on clearing trade tensions between the United States and China, particularly as around 30 percent to 40 percent of Hynix's DRAM and NAND chips are manufactured in China.
15 Articles
15 Articles
South Korea Stock Market Crash: Heavy selling in semiconductor and chip stocks has devastated the South Korean market, with the Kospi falling 35% in just one month. Now that the index has lost 35%, a stock market crash is inevitable.
In a month, one of the world's most spectacular stock booms has turned into a real nightmare after the South Korean KOSPI index collapsed with lightning speed, causing billions to disappear...
[Ddangjipgo] “In terms of actual impact, this massive stock market crash far surpasses the IMF crisis and the Lehman Brothers collapse. Isn’t this all the fault of the government, which inflated stock prices while blocking even home ownership?” The KOSPI, which soared to 9,385 points during trading on June 19, has plummeted to 5,547 points as of the 30th of this month. Calculating the decline rate from the peak, it amounts to a staggering 40.9%…
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