South Korea’s Kospi has fallen 25.9% from its June 22 record close, leaving the benchmark in bear-market territory despite a rebound over the past week.
Fading enthusiasm for the artificial-intelligence trade is driving the slide, undercutting a market that had surged on AI-linked optimism.
The weakness has also hit U.S.-listed exposure to South Korean stocks: the iShares MSCI South Korea ETF is down nearly 28% from its June 18 peak.
The drop signals a sharp reversal in one of this year’s standout equity rallies, showing how quickly AI-driven momentum can unwind.