South Korea’s Kospi index fell sharply into bear market territory on Wednesday, dropping 20% from its record high set earlier this year. Persistent losses in leading technology shares have fueled investor caution and underscored mounting volatility, making Kospi the world’s most turbulent major market in 2026.
The benchmark Kospi index declined more than 6% on Wednesday, losing 470 points to session’s low at 7,186 and making its third day of decline. Heavyweights such as Samsung Electronics lost 7% on the day, while SK Hynix fell 4%. LG Energy Solution, a prominent battery manufacturer, also slipped 5%. Kospi made its 52-week high at 9,114 points on June 22, 2026.
The recent selloff accelerated after Samsung shares tumbled nearly 10% on Tuesday, despite the company projecting a significant 19-fold surge in second-quarter operating profit. Investors remained unconvinced by the earnings forecast, focusing instead on concerns about whether the current surge in demand for AI-related chips can continue. Market observers pointed to elevated expectations stemming from historic memory chip prices and strong pre-earnings rallies in shares, which left little room for upside surprise following Samsung’s report.
Foreign investors contributed to the slide, offloading South Korean stocks worth approximately 471.7 billion won ($311.68 million) amid overall profit-taking after strong year-to-date gains.
Global sentiment was also pressured by declines in the U.S., where the tech-heavy Nasdaq dropped over 1.16% in the previous session. U.S. semiconductor stocks, including Intel, Micron, and AMD, each fell sharply amid uncertainty over the pace and sustainability of AI-fueled investments.
