Kospi Drops 20% Into Bear Market as AI Skepticism Exposes 50% Chipmaker Concentration
Updated
Updated · CNBC · Jul 9
Kospi Drops 20% Into Bear Market as AI Skepticism Exposes 50% Chipmaker Concentration
3 articles · Updated · CNBC · Jul 9
Summary
More than a 5% Wednesday slide pushed South Korea’s Kospi 20% below its June 19 record high, capping a rapid reversal from one of the world’s hottest equity rallies.
Global AI skepticism, crowded positioning and profit-taking drove the selloff, analysts said, with Samsung Electronics and SK Hynix making up more than half of the index’s weighting in June.
That concentration amplified swings even as fundamentals stayed firm: Samsung posted blockbuster profit, and memory prices rose 50% to 80% in the second quarter with further gains expected.
The Kospi volatility index has jumped more than 200% this year, underscoring how retail flows, leveraged ETFs and AI-heavy positioning have made 5% to 10% market moves more common.
The index is still up more than 70% this year, and analysts see possible support from SK Hynix’s U.S. listing on Friday and late-month earnings commentary if global risk sentiment steadies.