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Updated · Bloomberg · Jul 28Kospi Plunges Nearly 11%, Triggering 20-Minute Trading Halts as Chip Rout Spreads
3 articles · Updated · Bloomberg · Jul 28Summary
- South Korean stocks were hit by repeated trading suspensions Tuesday after a chipmaker-led selloff drove the Kospi down nearly 11%.
- Samsung Electronics and SK Hynix each tumbled more than 13%, and the rout spread beyond semiconductors into the broader market.
- The Korea Exchange first suspended program trades as futures slumped, then halted cash trading in both the Kospi and Kosdaq for 20 minutes each.
- The cascade of halts underscored how a sharp semiconductor downturn can destabilize South Korea's wider equity market.
Insights
How did a sudden shift in AI sentiment trigger an algorithmic selling spiral that brought South Korea's stock market to a halt? Could the heavy reliance on a few chipmakers force South Korea to restructure its financial markets to prevent future economic shocks? Is the AI hardware bubble bursting, or does this extreme market crash represent a rare buying opportunity for long-term tech investors?